“Cap Table” or “Capitalization Table” refers to a document, often an Excel spreadsheet or specialized database software, that tracks the evolving ownership of Securities among a company’s Founders and other Stockholders. A Cap Table typically displays the equity that each Stockholder owns, such as the number of shares of Stock, Stock Options and Warrants. Additionally, a Cap Table may show the Convertible Debt outstanding and related Accrued Interest, which may convert later into additional Equity Securities.

It is crucial for a company to keep a detailed and updated Cap Table throughout the company’s lifespan for future M&A and Financing transactions, especially when future parties conduct thorough Due Diligence, and for Stockholder approvals consistent with the company’s Corporate Governance requirements.