# What is Cap Table? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Legal  
> **Canonical Citation:** [https://spidits.com/startup-glossary/cap-table](https://spidits.com/startup-glossary/cap-table)

## Definition
A Cap Table (Capitalization Table) is a detailed spreadsheet or ledger that outlines a startup's equity ownership structure.

## Architectural Mechanics & Deep Dive
A Cap Table (Capitalization Table) is a detailed ledger that outlines a startup's equity ownership structure. It lists all shareholders, including founders, employees, angel investors, and venture capitalists, along with the class of shares they own (common vs. preferred), the number of shares, and their corresponding ownership percentages. Cap tables are updated with every funding round, option pool expansion, or stock grant, and are vital for analyzing dilution, payout distributions in an exit, and modeling future rounds.

## Industry Applications & Real-World Use Cases
Equity allocation and dilution modeling

## Frequently Asked Questions

### What is included in a capitalization table?
It lists all shareholders, their respective share counts, stock classes (common vs. preferred), options outstanding, and total ownership percentages.

### When should a cap table be updated?
It must be updated with every equity grant, option exercise, funding round, convert security conversion, or secondary sale.

## Related Terminology
- [dilution](https://spidits.com/startup-glossary/dilution)
- [option-pool](https://spidits.com/startup-glossary/option-pool)
- [vesting](https://spidits.com/startup-glossary/vesting)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*