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This is the clean-cap-table companion to the dilution math: it names the six specific things that scare a first lead investor, including neglected SAFEs and notes that create confusion about real ownership, undocumented early grants with no vesting, and a disorganized table that stalls diligence. If you are stacking a grant, an incubator, and an accelerator, this is the checklist for keeping the table clean enough that your first priced round does not choke on it.
Cap Table Mistakes to Avoid When Preparing to Raise Your Next Round
From StartupBOS.org by StartupBoston 8 min read
- Untracked SAFEs and notes create confusion about actual ownership and stall diligence: model every convertible before it converts
- Every equity grant, SAFE, or note needs signed legal documents behind it, or you pay to fix it mid-round
- A disorganized cap table read as poor management can lose investor interest before terms are even discussed
