VIDEO: What Is a Cap Table in Business

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Imagine starting a company with two of your friends. You each put in some money, split the work, and agree to figure out ownership later. Fast-forward a few months you’ve raised funds from a few investors, hired early employees, and promised them a bit of equity too. Then comes the problem: nobody remembers who owns what anymore.

One person claims they have 40%, another says 30%, and the investors are asking for updated figures before they put in more money. Now everything seems to be falling apart. That’s exactly the kind of confusion a cap table prevents.

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