Are Cap Tables Public? Should You Keep Yours Confidential?

A cap table lists all the current and past owners of your company and what are their ownership stakes. But are cap tables public?

Cap tables are an essential tool for managing dilution, issuing stock options, and raising money from investors. Despite its importance, there is a lot of confusion about whether or not cap tables are public information.

In this post, we'll clear up that confusion. We'll look at regulations and answer the question "are cap tables public?" We'll also look at why it's beneficial to maintain confidentiality with regards to your cap table.

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Why Are Cap Tables Important?

As a startup or small business, you will want to keep close track of your capitalization tables (or cap tables for short). This document can be extremely helpful in a number of ways, most notably when you are raising money.

Your potential investors will want to see a cap table in order to get an idea of how much equity shares are available. This will help them determine whether or not they want to invest in your company.

Additionally, the cap table can be used to manage employee stock options plans. Overall, the cap table is a critical tool for startups and small businesses.

It provides valuable information about who owns what percentage of the company. If you are looking to raise money, the cap table is a great way to show potential investors how much equity is available.

Are Cap Tables Public Information?

So, are cap tables public information? The quick answer is: there is no legal requirement to make cap tables public.

In some cases, cap tables are public information, if the company chooses to make it public. For example, if it wants to attract new investors, or if it wants to gain government contracts.

While cap table information is not publicly available, it is important to keep in mind that this information can be shared with potential investors, employees, or anyone else who has a vested interest in the company.

So while there is no legal requirement to make this information public, it is something that should be considered on a case-by-case basis.

Should Cap Tables Be Confidential?

As startup companies grow and take on more investors, the question of whether or not to keep the company's capitalization table (cap table) confidential becomes more relevant.

There are arguments to be made for both sides, but ultimately the decision comes down to what is best for the company.

There are a few key considerations to keep in mind when making the decision to keep the cap table public or confidential.

1. Consider the Stage of the Company

If the company is still in the early stages, it may be best to keep the cap table confidential in order to avoid giving too much information away to potential competitors.

However, if the company is further along in its development, it may be more advantageous to make the cap table public in order to attract more investors.

2. The Company's Level of Transparency

Another important consideration is the level of transparency that the company wants to maintain. If the company is comfortable with sharing information about its investors and ownership stakes, then making the cap table public may be the best option.

On the other hand, if the company wants to keep its investor list private, then keeping the cap table confidential may be the better choice.

3. Case-to-Case

Ultimately, the decision of whether or not to make the cap table public or confidential should be based on what is best for the company. If the company is still in the early stages, it may be best to keep the cap table confidential.

However, if the company is further along in its development, making the cap table public may be the better option.

Who Should Have Access to Your Company's Cap Table?

As a startup, one of the most important questions you'll answer is who should have access to your company's cap table.

The answer may depend on who you ask, but in general, the people who should have access to your company's cap table are those who need to know how much equity each person owns in the company.

This includes:

• Founders
• Employees
• Investors
• Board members

The reason why it's important to have a clear understanding of who should have access to your company's cap table is because it can be a delicate balance between transparency and protecting your company's information.

You want to be transparent with your team and investors, but you also don't want to give away too much information that could be used against you.

At the end of the day, it's up to you to decide who should have access to your company's cap table. But, as a general rule of thumb, you should err on the side of caution and only give access to those who absolutely need it.

Conclusion: Are Cap Tables Public?

So, are cap tables public? Should you keep it confidential? There are no regulations forcing you to make your cap table public.

However, whether to publish it or not is up to you. Cap tables may be kept confidential for a number of reasons.

First, they contain sensitive financial information about your company. Second, they can be used to calculate dilution and issue stock options.

However, once you are trying to secure investors, making your cap tables public may facilitate investments. Investors may use it to negotiate terms or valuation when investing in your company.

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