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Two12 is simply a table giving an analysis of the percentages of total ownership, equity dilution (the difference between actual and potential), and net worth (worth divided by current assets). Capitalization tables are extremely important to business owners since they give the essential information needed to decide if a business has good enough capital to continue as a going concern. Most private investors require capital when they make their investments. Without good capital, most businesses will not be able to survive.Investors are more apprehensive about funding new ventures because of their lack of knowledge and experience. Lack of money does not mean that a business cannot be successful; it simply means that the venture may need more time to mature as compared to conventional loans from banks. As a result, most new entrepreneurs tend to put off their plans to raise money for start-up costs until they have some funds in hand. After they have enough money to start their business, they often find out that they don't have enough to keep the business going. Capitalizing one's business with borrowed money or selling shares is usually not an option, leaving entrepreneurs at a loss.Fortunately, there is such a thing as a capital table that provides detailed information about owner equity and diluted ownership percentage. This information is crucial to new investors since they are the ones who will determine if a business can survive without outside financing. The purpose of a cap table is to provide the necessary information to new investors before they decide whether or not to invest in a given business. To investors, a cap table is a very important document because it gives them the precise numbers required to evaluate a business's ability to survive as well as its potential return on investment.In general, cap tables present information similar to that shown on a conventional capital table. However, they also contain an exit waterfall, indicating when the company will achieve certain revenues. The exit price is usually set at a point that is close to the current value of the business. However, a cap table should be used with caution because it may tend to lead people to view companies in a negative light. For example, a large cap table may represent a successful business that has the potential to grow significantly in the next few years, which may cause inexperienced investors to view it negatively.There are two types of capital table that an investor can choose from: fixed and variable. A fixed capital table provides details about shareholding pattern of the founders. The information found on a fixed capital table may include the percentages of shares held by each partner. Although this type of capital table provides details about the distribution of ownership, it may fail to provide information about founders.On the other hand, a variable capitalization table shows an interactive capital structure. The objective of this type of capital structure is to show how the value of the shares will vary throughout the startup's lifetime. The values on the table can be viewed as estimates based on current market conditions. This type of capitalization table allows the shareholders to take their decisions in regards to the payment of dividends or capital distributions. However, there are still Two12 when it comes to this type of capital structure.Capitalizations are complex, so you really have to spend some time to understand them. Capitalization Table can be really confusing, so you better be sure that you understand every bit of its meaning before you put your money in a business. If you are interested in trading stocks, you should understand cap tables before you start doing anything else. There are people who are willing to teach you the ins and outs of capitalizations.Capitalizations can also be described as pre-money arrangements made between the partners in a business. This capital structure can actually help entrepreneurs determine the right amount of capital that they need to purchase shares at a specific price and date. There are different capital structures, such as common equity, preferred stock, debt capitalization, etc. The choice of the structure really depends on the needs of the entrepreneur and the preferences of the investor.