A cap table (capitalization table) is a spreadsheet showing company ownership: who owns what percentage, share types (common, preferred), option pools, and fully diluted ownership. It tracks: founders' shares, investor equity, employee options, convertible notes/SAFEs. Essential for fundraising—investors analyze cap table for red flags. Keep it clean: avoid many small investors, maintain founder control through Series A, and reserve 10-15% option pool.
Key What Is Cap Table Takeaways
- Shows all company ownership and share types
- Tracks founders, investors, and employee options
- Includes convertible notes and SAFEs
- Fully diluted includes all potential shares
- 10-15% option pool is standard
- Investors look for red flags in cap table
- Maintain founder control through Series A
- Use software for complex cap tables
What Is Cap Table Statistics
10-15%
standard option pool
>50%
founder control target
20-30%
typical Series A dilution
4 yr
standard vesting period
What Is Cap Table FAQ
Expert Tips
Keep it simple early
Complex cap tables scare sophisticated investors
Model future rounds
Understand dilution impact before raising
Use cap table software
Spreadsheets break down after Series A