Cap Table (Capitalization Table)

Definition

A spreadsheet showing who owns what percentage of your company, updated regularly as you dilute yourself with more funding rounds.

Example Usage

After the Series A, our cap table showed the founders at 60%, investors at 35%, and employees at 5%.

Origin

Standard financial/corporate terminology

Fun Fact

Most startups are fully diluted by Series D, with founder ownership reduced to 10-20%

Source: Standard corporate finance terminology

Related Terms

Advanced

anti-dilution protection

A clause protecting investors from getting screwed when a company raises money at a lower valuation, automatically giving them more shares to maintain their investment value. Founders hate it; investors demand it.

🚀 Startup / VC

Beginner

equity financing

Raising capital by selling ownership stakes in the company rather than borrowing money. It's the fundamental bargain of venture capital: you get money now, investors get a piece of your future success (or failure).

🚀 Startup / VC

Beginner

Accelerator

A fixed-term program that accelerates startup growth through mentorship, resources, and the crushing pressure of a demo day deadline. It's like a pressure cooker for companies -- some come out perfectly cooked, and some just explode.

🚀 Startup / VC

Intermediate

dry powder

Unspent capital sitting in a VC fund, waiting to be deployed into investments. The ammunition that lets VCs act fast when hot deals emerge or support portfolio companies needing emergency cash.

🚀 Startup / VC

Intermediate

valuation cap

The maximum valuation at which a convertible note or SAFE will convert to equity—a safety net for early investors betting on you when you were nobody. The lower the cap, the more expensive your desperation was.

🚀 Startup / VC

Intermediate

product-led growth

A go-to-market strategy where the product itself drives customer acquisition, retention, and expansion rather than traditional sales teams. Users fall in love before ever talking to a salesperson.

🚀 Startup / VC

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