Cap Table

A capitalization table is the record of who owns what in a company: founders, investors, and employees, with their shares, options, and percentages. It is the map of ownership and control.

All shareholders, share classes, option grants, the option pool, and any convertible instruments like SAFEs and notes, plus fully diluted ownership percentages. It should reflect everything that affects ownership.

One that is simple, accurate, and up to date, without messy or unusual ownership structures that scare investors. Too many tiny holders or unclear terms make future rounds harder. Cleanliness signals discipline.

It shows ownership as if all options, warrants, and convertible instruments had converted into shares. It is the conservative, true view of who owns what. Founders should always look at the fully diluted picture.

Every time ownership changes: a raise, an option grant, a SAFE, or a transfer. Letting it drift leads to painful, error-prone cleanups during a financing. Keep it current.

It shows whether founders still own enough to stay motivated, and whether past deals created problems. A broken cap table can kill a round. Investors want founders to retain meaningful ownership.