Understanding Cap Tables: What Founders Often Get Wrong
A cap table isn’t just a spreadsheet — it’s a strategic blueprint for your company’s ownership.
In this episode of Capital Compass, we break down what a cap table is, why it matters more than most founders realize, and the critical mistakes you should avoid. Whether you're raising your first round or preparing to issue employee equity, knowing your cap table inside out is essential.
What actually goes into a cap table ? The difference between common vs preferred shares? How dilution works when you raise funding? Why fully diluted cap tables are what investors care about? What happens when SAFEs and convertible notes convert? ESOPs, vesting, and why founders often underestimate their impact.
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