Fundraising
Cap Table Cleanup
Quick definition
Pre-Series A reconciliation of all equity instruments, vesting, and ownership.
Before institutional priced rounds, founders must reconcile all SAFEs, convertible notes, advisor grants, terminated employee shares, and §83(b) filings into a single source of truth. Common issues: unsigned advisor grants, terminated employees still on cap table, missing §83(b) elections, MFN clauses triggered, option pool top-up dilution underestimated. Tools: Carta, Pulley, AngelList. Typical cleanup time: 4-8 weeks before Series A close.
Related fundraising terms
SAFE (Simple Agreement for Future Equity)
Convertible instrument commonly used for early-stage rounds.
409A Valuation
Independent valuation of common stock used to set option strike prices.
Cap Table
A record of all ownership interests in your company.
Pro Rata Right
An investor's right to maintain their ownership % in future rounds.
Frequently asked questions
- What is Cap Table Cleanup?
- Before institutional priced rounds, founders must reconcile all SAFEs, convertible notes, advisor grants, terminated employee shares, and §83(b) filings into a single source of truth. Common issues: unsigned advisor grants, terminated employees still on cap table, missing §83(b) elections, MFN clauses triggered, option pool top-up dilution underestimated. Tools: Carta, Pulley, AngelList. Typical cleanup time: 4-8 weeks before Series A close.
- Why is Cap Table Cleanup important for startups?
- Cap Table Cleanup is a fundraising concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does Cap Table Cleanup belong to?
- Cap Table Cleanup is a Fundraising term in the StartupCFO finance glossary — alongside other fundraising concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about Cap Table Cleanup?
- Beyond this definition, see the related fundraising terms below, or explore StartupCFO's insights and tools that put Cap Table Cleanup in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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