Founders: Do You Have a Cap Table?
Founders, do you have a Cap Table?
Here’s what you need to know 👇
One of the biggest mistakes early-stage founders make is approaching investors before they are truly ready.
They risk premature burnout and insurmountable reputational damage.
Your first step should be prioritizing controlled, profitable experimentation over exponential growth.
Do this by hiring technical resources, creating solid MVPs, and acquiring customers without venture capital.
Only then will your best next step be bringing in investors to help you scale the startup.
And you’ll need a capitalization table to provide investors with a clear picture of company ownership.
This will help them determine the percentage of equity owned by:
As companies continue to grow and equity continues to dilute, cap tables become increasingly important to founders.
Maintaining a firm grasp on shareholder impact is crucial when evaluating employee options, term sheet negotiations, and so on.
The good news?
📍 I’m sharing a cap table by Founder Institute with only minimal data points needed.
Interested in taking a look?
Then join us on Sales & Investor Accelerator where I will share these valuable resources. Join us here!