Cap Table 101 - Here is how to keep it healthy A lot of founders mess up their cap table in early days. Here are 3 quick rules: 1. Founders should own ~80–85% post pre-seed Too low, and VCs will worry you’re already over-diluted. 2. Avoid giving big equity to advisors or freelancers Use small grants (0.25–1%) with vesting, if at all. 3. Don’t issue random SAFE with different terms Unstructured early rounds = messy conversions later. 🎯 Pro tip: Create a cap table spreadsheet from Day 1. Update it every time equity moves. Bad cap tables kill deals. Keep it clean. Follow me for more such insights on fundraising. DM me if you are raising money.
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