What Investors Look For When Considering Your Company’s Caps Table
Allocating capital using a capitalization table, or cap table for short, is among the most important things a business will does because it provides the investors with valuable information regarding who owns the company and the founding team's thoughts on ownership, financing, and exit strategies.
It's critical to know exactly how many people own percentages of the company, how much stock has been issued to date, and how much is outstanding. All of this important information must be tallied up so the cap table equity can be seen clearly. A company's equity is the ownership interest in the company after all liabilities are accounted for and the value that shareholders would receive if the assets were liquidated and all debts were paid off. The following are some of the things that inves...