The article emphasizes the importance of managing a startup's cap table effectively to present a compelling story to investors. Cap tables, which outline the ownership structure of a company, can become complex as new investors come in and employees join with different equity grants and vesting schedules. The article recommends utilizing available resources and tools for cap table management instead of reinventing the wheel. Investors primarily look for founders owning enough equity and a healthy option pool to attract employees. Uneven equity distribution among co-founders and shareholders who don't add value beyond money are potential red flags. Mistakes in the cap table can lead to conflicts and should be avoided.
Understanding Startup Cap Table By Chris Behrens
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