What does a cap table specifically show?

A cap table, or capitalization table, provides a detailed breakdown of the ownership stakes in a company, particularly after funding rounds or investments. It outlines who owns shares in the company, the percentage of ownership each stakeholder has, and the types of equity instruments involved, such as common shares, preferred shares, options, and convertible notes.

This information is crucial for both existing and potential investors, as it shows how equity is distributed among founders, employees, angel investors, venture capitalists, and any other stakeholders. Understanding the structure of ownership can influence decisions related to further investment, dilution of ownership through new funding rounds, and overall corporate governance.

The other options do not accurately describe what a cap table entails. For instance, projected revenue streams and future financial projections pertain more to financial modeling and forecasting, while operational expenses focus on the costs associated with running a business. These elements are important in their own right but do not reflect the specific ownership structure that a cap table summarizes.