A ledger tracking the equity capitalization of a company. It lists who owns what, including founders, investors, and the employee option pool.
Why it matters: The cap table is the ultimate source of truth for ownership and payout scenarios. A 'messy' cap table (too much dead equity, complex preferences) can deter future investors.
In practice: Using software like Carta to model how a $5M Series A will impact the founder's percentage on the cap table.