A capitalization table (cap table for short) shows how ownership of the company is distributed among all shareholders after each round of investment. It also shows exactly what classes of stock exist, and who owns how many shares (and what percentages) of each. The rows are labeled with all classes of shareholders, grouped into two general categories: common and preferred. The body of the table appears in groups of three columns; each group of three columns corresponds to equity ownership at a particular time, or more specifically just after an investment round. The first group shown corresponds to equity distribution immediately after the founders' round. The second group shown corresponds to equity distribution immediately after the first major investment round, and so on. Within each group, the three columns are as follows:
Let's say I am looking at a Series B entry in the cap table. Can I assume that these are my “post-money cap table” for Series B and the previous three columns shown here are my “pre-money cap table”?
Well, almost! When one uses a cap table to examine the effects of a particular investment round (like Series B in the case of your question), the number of granted options in the “pre-money cap table” are updated to be identical to the number of granted options shown in the “post-money cap table.” As a result, the total number of fully diluted shares in the pre- and post- differ only by the number of shares being sold in the investment round.
Because we are using the cap table here during the planning stage of your company to show the overall effects of all your investment rounds, we've chosen to show in each round the number of options granted at the time of that round.
I don't plan to have investors. Does my cap table tell me anything?
It won't tell you much. But just for confirmation, it should show that the founders and option holders own 100% of the company.
I have not granted any options. Why does my cap table show options?
By default, Offtoa assumes that you have a board of directors and that they are granted options. If you want to change this, click on assumptions/financing/investments/options. Then change either the number of board members or the percent of option pool granted to each board member.