Startup Cap Tables Explained (for Founders)
What a cap table is, how startup ownership and dilution work across rounds, how option pools and SAFEs affect it, and how to keep a clean cap table from day one.
Equity splits, vesting, founder agreements and the legal mechanics that protect co-founder relationships when things get hard.
8 articles
What a cap table is, how startup ownership and dilution work across rounds, how option pools and SAFEs affect it, and how to keep a clean cap table from day one.
What a SAFE is, how valuation caps and discounts work, post-money vs pre-money, SAFEs vs convertible notes, and how dilution sneaks up on early founders.
What startup vesting and the one-year cliff mean, why every founder and early hire needs them, standard schedules, and the acceleration terms worth understanding.
How startup stock options work for early employees: option pools, strike price, vesting, exercising, and what an offer of equity is actually worth before you accept.
When to incorporate a startup, how to choose between an LLC and a C-corp, why investors expect Delaware C-corps, and the founder paperwork to get right early.
Equal or earned? A clear framework for co-founder equity splits in 2026 — contribution factors, vesting, cliffs and the founder agreement that keeps it fair.
What a co-founder agreement covers — equity, vesting, roles, IP and exits — why every founding team needs one, and how to put it in place before trouble.
How to pay early team members when cash is scarce: the salary-versus-equity trade-off, typical ranges, vesting, and a framework for fair startup offers.