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Glossary

Cap Table

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Accelerator

An accelerator is a fixed-term, cohort-based program that invests a small amount in early-stage startups in exchange for equity, then runs intensive mentorship that ends with a demo day.

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Dilution

Dilution is the drop in your ownership percentage when a company issues new shares. It happens at every priced round and option pool top-up.

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Option Pool

An option pool is a chunk of company shares set aside for current and future employees, usually 10–20% of the company.

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A cap table (capitalization table) is the spreadsheet that records who owns what in your company. Each row is a shareholder; each column is a class of equity. The cap table is the single source of truth for ownership.

What's on it

  • Founders. Common shares, usually subject to vesting.
  • Option pool. Reserved shares for current and future employees, usually 10–20%.
  • Investors. Preferred shares from priced rounds, plus any unconverted SAFEs and notes.
  • Advisors. Often warrants or option grants, small individual stakes.

Why it matters

The cap table determines:

  1. How much each party gets in an acquisition.
  2. How much each party gets in subsequent funding rounds (pro-rata rights).
  3. How votes are distributed for board decisions.

A messy cap table (too many small holders, founders without vesting, undocumented promises) is a deal-killer in due diligence. Keep it clean from day one. Modern tools (Carta, Pulley, AngelList) maintain it for you once it's set up.