What Is a Cap Table?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding, investors will ask for a cap table.

Cap table stands for Capitalization Table and is a document that tracks the capital structure of the company. In essence, it shows who owns how much of the company’s equity.

So, a company that has had multiple rounds of funding will have different investors in those rounds of funding (seed, angel, Series A, B, C...etc.), which needs to be kept in one place.

For presentation purposes, the cap table typically gives a high-level summary of the current percent ownership by each investor.

As the company plans future fundraising, the cap table shows the impact of those raises on the investors’ ownership. Current investors will have lower percent ownership but should make up for it in an increased valuation.

Cap tables include convertible debt, options, and warrants as well as equity. If an investor asks for a “fully diluted” cap table, then all of these are added to the calculation.


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On this episode of Investor Connect, Hall welcomes Seren Rumjancevs, CEO, and Rain Kivisik, Founder at Dealum.

Dealum provides a superior investor group collaboration platform to build a vibrant early-stage investing ecosystem. Their objective is to become the leading global deal-flow source for early-stage investors by creating meaningful connections between investors and startups.

Seren has been involved in the technology and startup scene from the very beginning of her professional life. In over a decade in Tartu Science Park, building a career from Project Manager to Board Member, she saw first-hand how technology-intensive companies are built, how they succeed, and also learned how they fail. This didn’t stop her from falling in love with the fast-paced high-tech startup scene and eventually starting her own fashion tech company, Heelosophy, developing mass-customisation technology for high-heeled shoes’ insoles.

Rain is an Estonian entrepreneur and investor focusing on the technology and software sector. He has been one of the founders of several successful companies such as Playtech (listed in LSE), Contriber, and Dealum. He has also mentored and invested in 30+ early-stage software companies. Rain is currently working on software service for angel groups, with the goal of streamlining and making investing into startups more easier and transparent.

Seren and Rain advise investors about automating their investment process, discuss the state of investing in early-stage companies, the main change they see happening in the market, and some of the challenges investors face. 

You can visit Dealum at www.dealum.com, via LinkedIn at www.linkedin.com/company/dealum/, and via Twitter at www.twitter.com/dealum_.   

Seren can be contacted via email at seren@dealum.com, and via LinkedIn at www.linkedin.com/in/serenrumjancevs.

Rain can be contacted via email at rain@dealum.com.  
________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.