Cap table

The record of who owns what part of the company — founders, employees, option pool and investors.

Example

Founder A 45%, Founder B 30%, option pool 10%, seed investors 15%.

Important

A messy cap table — dozens of tiny shareholders, undocumented promises, unvested handshake deals — can block a future round entirely. Keep it clean from day one.

Related terms

• Dilution — When new shares are issued, existing shareholders own a smaller percentage of the company than before.
• Equity — Ownership in the company, usually held as shares.
• Option pool — Shares set aside to grant to future employees.
• Common stock — The ordinary share class held by founders and employees. Last in line if the company is sold or wound up.

Lessons that explain it

• Splitting founder equity — Not based on who had the idea. Based on what each person brings from here — and it should be a real conversation, not a reflex 50/50. (12 min)
• Dilution — what you actually give up — Owning less of more can be better than owning all of little. But only if you know which one is happening. (12 min)
• Reading a cap table — Who owns what, in what class, and what happens when the next round lands. (12 min)
• Due diligence — What investors check before wiring, and the four things that most often kill a deal at this stage. (12 min)

All 176 terms in the Founder glossary