What is Cap Table?
The single source of truth for who owns what - shares, options, and percentages - in your company.
Cap Table: definition
The cap table is the authoritative ledger of company ownership. It tracks founders, investors, and employees; common and preferred shares; the option pool; and how much of the company each holds. It updates with every grant, exercise, financing, and secondary. An accurate cap table is essential for fundraising, exits, and every equity decision in between.
- Lists all shareholders and their holdings by share class
- Shows issued vs. fully diluted ownership (including options and pool)
- Updates with grants, exercises, financings, and transfers
- Drives dilution math, waterfalls, and 409A/ASC 718 inputs
How Fintra handles it
Fintra manages the cap table on the same platform as the accounting, so equity events stay consistent with the books. New grants apply the current 409A strike, exercises and financings update ownership, and the fully diluted view is always current. Because it shares the ledger, the ASC 718 stock-comp expense reconciles directly to the grants on the cap table.
Worked example
| Holder | Security | Shares | Ownership |
|---|---|---|---|
| Founders | Common | 6,000,000 | 60% |
| Seed investors | Preferred | 2,000,000 | 20% |
| Option pool | Options | 1,500,000 | 15% |
| Angels | Common | 500,000 | 5% |
Frequently asked questions
What is a cap table used for?
To track exactly who owns what in a company and to model how ownership changes with new grants, financings, and exits. It drives dilution calculations, exit waterfalls, option pricing, and the ownership disclosures investors require during diligence.
What is the difference between issued and fully diluted shares?
Issued shares are those actually outstanding today. Fully diluted shares include everything that could become shares - unexercised options, the remaining option pool, warrants, and convertibles. Ownership percentages differ significantly between the two, which is why both are shown.
Why do cap tables get messy?
Because they change constantly and are often maintained in spreadsheets disconnected from the books, errors and stale versions creep in. Keeping the cap table on the same platform as accounting - as Fintra does - prevents the drift between what the cap table says and what the financials show.
Does Fintra include cap table management?
Yes. Fintra manages the cap table alongside the ledger, so grants, exercises, and financings stay consistent with the books and the ASC 718 stock-comp expense reconciles directly to the equity outstanding.
Keep going
Try the calculator
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
See how Fintra handles the numbers behind this term
Fintra is the AI Finance Operating System for SMBs - accounting, planning, payroll, equity, and AI governance on one shared data model, with a named human approving anything consequential. Free to start, no card required.
Talk to us