Cap Table Explained: How to Read and Model Ownership
A cap table shows who owns what in your startup. Learn how to read one, how rounds and option pools change it, and how to model dilution step by step.
Equity and cap tables explained: co-founder splits, founder vesting with cliffs and leaver clauses, option pools and how dilution changes ownership.
A cap table shows who owns what in your startup. Learn how to read one, how rounds and option pools change it, and how to model dilution step by step.
How to split equity between co-founders: equal vs unequal splits, a weighted scoring method with a worked example, and why vesting matters more than the number.
What an employee option pool is, how to size it from your hiring plan, why a pre-money pool lowers your effective valuation, and how to negotiate it.
How a founder vesting schedule works: the 4-year schedule with a 1-year cliff, a month-by-month example, good and bad leaver terms and acceleration on exit.