Carta vs. Pulley vs. AngelList?

Pulley is founder-friendly and cheapest early. Carta is the industry default and has better late-stage features. AngelList Stack is bundled with formation. All three do the job.

When to hire a lawyer for cap-table work?

For any priced round, always. For SAFEs, template documents are usually fine but have counsel review before signing.

Should employees see the full cap table?

Not typically. Individual grants and total company equity outstanding are usually enough. Full transparency creates management issues without adding motivation.

Cap Table: What It Is, Why It Matters, and How to Keep It

A messy cap table has killed more Series A rounds than any product problem. Here's how to keep yours clean from day one.

Cap Table Management for Startups

Your cap table is the ownership map of the company. Investors read it in the first 5 minutes of diligence. A confusing cap table signals founder inexperience and often kills the deal — regardless of business quality.

What a clean cap table looks like

Founders own >60% at seed. Option pool between 10-15%. Employee equity properly documented (grant letters, 83(b) filings, board approvals). No unresolved SAFEs sitting for years. No angel investors with unusual rights that pre-empt future rounds.

The most common cap table mistakes

Giving away 5-10% to advisors/agencies early. Missing 83(b) elections (huge tax problem later). Vesting starting at grant date instead of hire date. Convertible notes and SAFEs stacking without conversion math being tracked.

Manage it in a real tool from day one

Spreadsheets fall apart at 20+ shareholders. Carta, Pulley, and AngelList Stack all work. Cost is negligible compared to the cleanup cost of getting it wrong. Migration in year 3 from a spreadsheet is a common $10-30K legal bill.

Dilution math to internalize

Each priced round dilutes existing shareholders by the amount raised divided by post-money valuation, plus any option pool expansion (which usually comes out of pre-money — dilutes founders, not new investors). Model this before signing a term sheet.

Frequently asked questions

Carta vs. Pulley vs. AngelList?: Pulley is founder-friendly and cheapest early. Carta is the industry default and has better late-stage features. AngelList Stack is bundled with formation. All three do the job.
When to hire a lawyer for cap-table work?: For any priced round, always. For SAFEs, template documents are usually fine but have counsel review before signing.
Should employees see the full cap table?: Not typically. Individual grants and total company equity outstanding are usually enough. Full transparency creates management issues without adding motivation.

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