Lessons from the Cap Table: Common Mistakes Early Founders Make (and How to Avoid Them)

We’ve seen hundreds of cap tables—most of them messy. Early fundraising mistakes can haunt founders later. Here are five patterns we see too often, and how we help founders avoid them.

1. Over-Dilution in the First Round

Founders giving away 25–40% in a pre-seed is still happening. We help structure cleaner SAFEs and encourage right-sized raises that don’t cripple future ownership.

2. Misaligned Investors

Not all checks are equal. Some angels are passive, others overly involved. We help founders curate investors who add value—and align with the company's stage and strategy.

3. Ignoring the Option Pool

Many founders leave this to the end—or forget it entirely. We push for early planning so future hires are incentivized without surprising dilution later.

4. Stacking SAFEs Without Strategy

Stacking $50K–$100K SAFEs at random valuations muddies the cap table. We guide founders to structure raises that make sense now and later.

5. No Legal Hygiene

Missing docs. Unclear terms. Founders rushing to raise often leave compliance behind. We partner with legal teams early to make sure the foundation is solid.

If you’re building now, protect your cap table like it’s part of the product—because it is.