Raising money · A term for founders abroad
What is a cap table?
The record of who owns what share of a company, including options, SAFEs and other convertible instruments; investors read it first.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 14 of 105 in the glossary, filed under C.Every term, A to Z
Cap table, for a founder abroad.
A capitalisation table lists every owner and their percentage, and for a corporation every class of stock, option and SAFE. Investors read it first. For an LLC it's the ownership split in the operating agreement; for a corporation it's a ledger that changes with every grant.
A new Delaware startup usually authorises ten million shares at a tiny par value, issues most to the founders with four-year vesting, and keeps 10% to 15% for an option pool. Investors care about the fully diluted figure, which counts the pool and every SAFE.
Read next · guide · 4 minCap table basics for founders abroad: shares, vesting, the option pool and dilutionWhat founders ask next.
- What does fully diluted mean on a cap table?
- Ownership counted as if every option and SAFE had become shares. It's the figure investors mean when they ask what you own.
- Does an LLC have a cap table?
- Yes, in a simpler form: the ownership split in its operating agreement. The cap table guide covers a corporation's.
03 · See also
- The company itselfOperating AgreementThe private contract among an LLC's members that sets ownership, management and what happens when someone leaves; it isn't filed with the state.Read the term
- Raising money83(b) electionA founder's choice to be taxed on restricted stock when it's granted rather than as it vests, filed with the IRS within 30 days, with no extension.Read the term
- Raising moneySAFEAn investment contract, published by Y Combinator, where an investor pays now for shares issued at a later priced round; used by US corporations.Read the term
- Raising moneyAuthorised sharesThe most shares a corporation may issue, set in its certificate of incorporation; ten million is common for a startup.Read the term
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