Glossary Term
Cap Table (Capitalization Table)
Definition
A Cap Table is a document or spreadsheet that outlines the ownership structure of a company, detailing the equity ownership stakes, types of shares, and valuation at various funding stages. In the MedTech industry, it is an essential tool for tracking the distribution of equity among founders, investors, employees, and other stakeholders.
Relevance to the MedTech Industry
Cap Tables help MedTech startups and established companies manage equity, make informed decisions during fundraising, and ensure transparency with investors and stakeholders. They are crucial for understanding the financial implications of dilution, investment rounds, and exits.
Additional Information & Related Terms
Seed Funding An early investment stage often reflected in the initial Cap Table.
Convertible Notes Debt instruments that convert into equity, impacting Cap Table ownership.
Dilution A reduction in ownership percentage due to new shares issued during funding rounds.
Equity Incentive Plan Stock options or grants for employees, which are recorded in the Cap Table.