What a cap table tracks
Your capitalisation table records who owns what: founders, ESOP pool, angels and funds, plus convertible instruments not yet converted. It is the source of truth for ownership and dilution.
Mistakes that scare investors
- Too many small angels with no lead (a “messy” table)
- Founders with uneven splits and no vesting
- Verbal promises of equity with nothing documented
- Dead equity — large stakes held by people no longer contributing
Good habits
- Put founder vesting in place early
- Document every grant and SAFE/note
- Model dilution before you sign a term sheet
- Keep one canonical, up-to-date file
Investors read your cap table as a signal of how you run the company. Keep it clean and they relax.
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