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Cap Table Example and Template


As we discussed in previous sections of this guide, cap table management for startups can take all shapes and sizes and be managed on paper, spreadsheets, or software.

Let’s take a look at an example of a cap table and the different sets of information it should display.

At a minimum, your cap table will display the full list of individuals, institutions and other entities that own stock in your company. For each shareholder, you should be able to see what types of securities they own, how much, when they received their equity and what percentage of the total company they own.

While this is a good start, your cap table is going to quickly change. Unvested options will be added back to the cap table when employees leave or choose not to exercise them, new investors will replace existing investors, and you may have more complicated equity instruments like convertible debt that can dramatically change your cap table. All of these changes (down to each individual transaction) should be recorded in your cap table. This way, you have a full record of ownership that automatically updates when material events happen. It also makes it easier to model out different scenarios (like fundraises, for example) and see how it will impact every shareholder on the cap table.

Using an Excel Cap Table Template

As we mentioned in the previous article, using cap table management software is strongly recommended in order to avoid any errors or miscalculations. However, if you are just getting started, we created a free cap table template for startup founders, available for download here. You’ll notice that the template is broken up into different tabs for your shareholder types and that there are tabs to track any share sales, transfers or repurchases.

Taking Your Cap Table to the Next Level with Shareworks

Missing from this cap table excel spreadsheet and most homemade cap tables are a myriad of features and functions that can be found within Shareworks’ cap table software. These include the ability to:

●      Perform a waterfall analysis at the click of a button

●      Track liquidation preferences

●      Ensure compliance with securities regulations

●      Communicate with your shareholders

●      Get your 409A valuation

●      Model pro-forma financing rounds

●      And much, much more

Your cap table is one of the most important tools for growth as a private company. Contact Shareworks to learn more and schedule a demo of our robust equity solutions.

Shareworks by Morgan Stanley, Morgan Stanley Smith Barney LLC, and its affiliates and employees do not provide legal or tax advice. You should always consult with and rely on your own legal and/or tax advisors. CRC 3507720-3/22