A cap table (capitalisation table) lists every shareholder of a company and the percentage of equity each holds — founders, investors, employee ESOP pool, and any sweat equity. It evolves with each funding round as new shares are issued and existing holders are diluted.
Why it matters to you
Reading the cap table tells you who really controls the company and how concentrated ownership is. A clean cap table with reputable institutional investors is reassuring; one crowded with many small unrelated holders can signal a company that has raised messily. The DRHP discloses the cap table before an IPO.
Example: A buyer checked the cap table and saw a marquee VC still held a large stake — a sign of continued conviction — before purchasing unlisted shares.