Cap Table Mastery

Mastering your cap table doesn’t have to feel overwhelming! As we believe in slowly but surely, this webinar provides practical tips and strategies to help founders take control of their cap tables, protect their equity, and build great relationships with investors along the way.

About the Speakers

• David Kenney: Founder, Start Growth
• Jason Atkins: Co-founder and President at Cake Equity

What is a Cap Table and Why Does It Matter?

Think of a cap table as your company’s ownership map—it lays out exactly who owns what, how much they’ve invested, and the type of equity they hold. A clean, organized cap table isn’t just for show; it’s your secret weapon for making smarter decisions about fundraising, employee equity, and long-term growth strategies.

“Your cap table is another word for equity. So it can be everything, including shares, ordinary or preference shares, convertible notes, SAFEs, warrants, options, all that stuff. Essentially, I want you to think about it like a huge long list of everyone who owns any type of equity and how many do they own and then what percentage is it. That's the absolute basics of a cap table. So if you own 10 percent of a ten-million-dollar company, great. You've got a million dollars worth of equity.” Jason shares.

The Role of Cap Table Modeling

Cap table modeling is like running “what if” scenarios for your equity. Want to see how a funding round, stock options, or an exit might shake things up? Modeling gives you the big picture, helping you stay ahead of dilution and make better choices.

"By modeling your cap table, you can confidently make decisions that align with your goals and maintain control of your company." Dave said.

How to Avoid Common Pitfalls

Strategic Valuation

• A high valuation might sound great for reducing dilution, but only if it aligns with realistic growth goals.
• Overvalued startups often stumble in later funding rounds when expectations don’t match reality.

Minimizing Dilution

• Bootstrap smartly and sync funding with key milestones to hold onto more equity.
• Keep the number of funding rounds to a minimum to preserve ownership.

Balancing Equity

• Fair equity splits among founders are crucial—vesting schedules can protect the team from imbalances if someone leaves early.
• Be upfront and open about equity decisions with your co-founders and team.

Keep Employees Motivated with ESOPs

An ESOP is an awesome way to inspire your team, but it’s all about balance. Overdo it, and you risk unnecessary dilution.

"A structured ESOP shows employees they are valued while preserving the company’s equity balance," Dave shared.

Build Trust with Investors

Building strong investor relationships is just as important as raising funds. Steer clear of overly complicated funding terms that might come back to haunt you. Instead, focus on being transparent and straightforward—it’ll attract investors who genuinely believe in your vision.

“If you go out and try to raise the wrong amount on the wrong pre-money valuation, if it doesn't make sense and you can't clearly articulate that and you don't have strength and knowledge in your cap table and your cap table model, it's a red flag for investors. It's one of the biggest red flags because they're giving you money that goes in your cap table. So it's very important to have a great strategy. The right advisors, a really good understanding of it, and very, very good documentation, because when they look at that, that builds trust, and it's more likely that they're going to give you money at the valuation you want.” Jason shared.

Plan Ahead and Stay Informed

Cap table management isn’t just some boring spreadsheet exercise—it’s a powerful tool to keep your startup on the path to success. Stay proactive, model different funding scenarios, and keep your ownership records clear and up-to-date. By following these practices, you’ll set yourself up to grow sustainably, attract the right partners, and protect what you’ve built.

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