Cap Table
A Cap Table (short for Capitalization Table) is a document that shows who owns what in a company. It's like a detailed spreadsheet that tracks all the ownership stakes, including stocks, options, and investments in a startup or company. People working in venture capital use cap tables to understand how ownership is divided among founders, investors, and employees. This knowledge is crucial when making investment decisions or planning future funding rounds. You might also see it referred to as a "capitalization schedule" or "equity breakdown."
Examples in Resumes
Managed and maintained Cap Table updates for a portfolio of 20+ startups
Led due diligence process including Cap Table analysis for Series A investments
Created and updated Capitalization Table models for pre and post-money valuations
Developed Cap Table forecasting tools for portfolio companies
Typical job title: "Cap Table Analysts"
Also try searching for:
Where to Find Cap Table Analysts
Example Interview Questions
Senior Level Questions
Q: How would you handle a complex cap table restructuring during a down round?
Expected Answer: Should explain the process of adjusting ownership percentages when new investment comes in at a lower valuation, including anti-dilution provisions and their impact on existing shareholders.
Q: What considerations go into designing an employee stock option pool?
Expected Answer: Should discuss determining pool size, vesting schedules, strike prices, and how to balance employee incentives with dilution of existing shareholders.
Mid Level Questions
Q: How do convertible notes affect a cap table?
Expected Answer: Should explain how convertible notes work, when they convert to equity, and how to calculate the impact on ownership percentages based on different scenarios.
Q: What are the key elements you look for when reviewing a cap table during due diligence?
Expected Answer: Should mention checking ownership percentages, outstanding options, convertible securities, and ensuring all documents match legal agreements.
Junior Level Questions
Q: What is a fully diluted cap table?
Expected Answer: Should explain that it shows ownership assuming all convertible securities and options are exercised, giving the complete picture of potential ownership.
Q: How do you calculate post-money valuation using a cap table?
Expected Answer: Should demonstrate understanding of how to use share prices and total shares outstanding to calculate company valuation after investment.
Experience Level Indicators
Junior (0-2 years)
- Basic cap table maintenance
- Understanding of equity structures
- Spreadsheet modeling
- Basic investment terms
Mid (2-5 years)
- Complex ownership calculations
- Due diligence analysis
- Option pool planning
- Convertible security modeling
Senior (5+ years)
- Cap table restructuring
- Advanced financial modeling
- Investment strategy planning
- Portfolio management
Red Flags to Watch For
- Unable to explain basic equity concepts
- Lack of attention to detail in calculations
- No experience with investment documentation
- Poor understanding of dilution mechanics
Related Terms
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