A tidy cap table is one of the most important signals you can send to an institutional investor. It shows that you are professional, forward-thinking and understand company structure.
What is a cap table, really?
A cap table (capitalisation table) is an overview of who owns shares in your company, and on what terms. It includes:
The most common mistakes
1. Too many small shareholders
Many startups accumulate 15–20 angel investors with 0.1–0.5% ownership. To a VC this looks messy and creates problems in future rounds.
2. No ESOP pool
Professional investors expect an ESOP pool of 10–15% before series A. If you do not have one, they will price it into the pre-money valuation.
3. Unclear anti-dilution provisions
Full ratchet anti-dilution is nearly impossible for new investors to accept. Broad-based weighted average is the standard.
What you should do now
Use Foundry House's cap table module to map out your current structure, and simulate the effect of different round scenarios before you sit down with an investor.