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What is Cap table?

Cap table: A record of who owns what share of a company.

Where Cap table fits

Cap table is part of Funding & Growth in Entrepreneurship. Startups fund growth through seed money, angels, venture rounds or bootstrapping. Runway is cash divided by monthly burn, and every equity round dilutes founders.

Practical tip

Start fundraising with 6+ months of runway, not 6 weeks.

Related terms

Venture capital
Funding for risky startups in exchange for equity.
Burn rate
How fast a company spends its cash, usually per month.
IPO
First time a company sells shares to the public.
Pivot
A major change of strategy based on what you learned.
Seed funding
The first outside money raised to start a company.
Runway
How many months a company can operate before its cash runs out.
Series A
The first major venture round after seed funding.
Equity dilution
Owners' percentage shrinks when new shares are issued.

Formulas you will use with it

Growth rateCAC payback (months)Rule of 40Annual recurring revenue (ARR)

Test yourself

Which term means: “A record of who owns what share of a company.”?

Cap table · Burn rate · Equity dilution

Answer: Cap table

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