Cap Table Management Guide

Cap Table Fundamentals

• A cap table tracks all equity ownership: common stock, preferred stock, options (granted and ungranted pool), warrants, and convertible instruments
• Maintain both a 'current' cap table (what exists today) and a 'pro forma' or 'fully diluted' cap table (including all unexercised options and unconverted SAFEs/notes)
• The fully diluted cap table is what investors use to evaluate ownership; it includes the option pool and all convertible instruments as if they were already converted