Legal & Compliance
Cap Table Management
The process of maintaining accurate records of company ownership, including all shares, options, warrants, and convertible securities.
Cap table management involves tracking and maintaining the complete ownership record of a company, including common stock, preferred stock, stock options (granted, exercised, and available), warrants, SAFEs, convertible notes, and any other equity instruments. Modern cap table management uses specialized software (Carta, Pulley, AngelList Stack) that automates calculations, manages 409A valuations, and facilitates secondary transactions.
In Practice
A Series B company's cap table tracks: 2 founders (35% combined), 3 VC investors across seed/A/B (40%), employee option pool (15% with 200+ individual grants), 12 angel investors (5%), and unissued pool (5%).
Why It Matters
Cap table errors compound over time and can derail fundraising or M&A transactions. Clean, auditable cap table management is a sign of operational maturity that investors evaluate during due diligence.
Related Concepts
Further Reading
How Much Should You Invest as an Angel?
The math behind angel investing allocation — portfolio sizing as a percentage of net worth, check size calculations, follow-on reserves, and why $5K checks usually don't work.
Angel Syndicates Explained: How They Work and When to Join
A complete guide to angel syndicates and SPVs — how they're structured, what carry and fees you'll pay, the pros and cons vs. direct investing, and how to evaluate syndicate leads.
What Is a Special Purpose Vehicle (SPV) in Venture Capital?
How special purpose vehicles work in venture capital — SPV structure, economics, legal requirements, and when they make sense for angel syndicates, co-investments, and emerging managers.
The Complete Guide to Startup Valuation Methods
How do investors decide what your startup is worth? A deep dive into every major valuation method from DCF to comparables to the VC method.
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