Article · 8 min read

Cap Table Mistakes to Avoid When Preparing to Raise Your Next Round

StartupBoston · StartupBOS.org Free Beginner

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.

• 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