AlphaTakes – The Basics of Capitalization Tables

In this AlphaTakes video, paralegal Macy Stoneback provides a brief summary of the capitalization table (“cap table”) for an emerging technology.

Here are the key takeaways from this video:

    (1) The cap table shows the outstanding equity of the company as of a given date, broken down by shareholder and equity type.

    (2) Officers refer to cap tables often when considering issuing equity to employees, advisors, and others.

    (3) A pro forma cap table can be prepared to see how shareholders and option holders are affected by actions like adding shares to the stock incentive pool, raising a round of financing

One thought on “AlphaTakes – The Basics of Capitalization Tables”

  1. Thank you for this video. I am at the beginning of the process of seeking funding and this blog has so much good information on it. I was in a conversation about a cap table today and needed to know what they were and your example is very clear as is your explanation.

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