Keep the views distinct
Authorized capacity, outstanding shares, granted options, and an unallocated reserve are not interchangeable. Define each view and avoid double counting the reserve. The guide includes a fictional table with founder shares and a compensation allocation.
Preserve the transaction trail
Record issuances, transfers, exercises, cancellations, and other changes as events. Keep document references and approval evidence attached to the right positions. A percentage that sums neatly to 100% can still conceal a missing or misclassified instrument.
Reconcile before sharing
Build from a previously verified balance and explain every movement. Separate planning scenarios from approved records, retain dated versions, and control who can see sensitive data. Software should support that review rather than substitute for it.
Build from transactions. Let percentages be the output.
Go Deeper into Cap Tables
Cap Tables Explained: Build a Clear and Traceable Ownership Record
Learn how to build and reconcile a cap table, distinguish outstanding and fully diluted shares, and track grants, conversions, and ownership history.
Venture Capital Equity: Valuation, Preferences, and Control
Explore venture capital equity with clear examples of pre-money valuation, liquidation preferences, option pools, governance, and financing trade-offs.
Equity Dilution from Financing: Worked Examples for Founders
Follow equity dilution through a priced round, option-pool increase, and simplified SAFE scenario with clearly defined ownership denominators.