How do I set up a cap table for my startup?

To set up a cap table, start with your total authorized shares (typically 10,000,000 for a Delaware C-Corp).

Allocate founder shares (usually 80 to 90 percent at incorporation), reserve an option pool (10 to 20 percent for future employees), and leave the remainder unissued. Record each founder's name, share count, vesting schedule, and grant date. Use a spreadsheet or dedicated tool like Carta, Pulley, or Lovie's CapTable product. Your cap table should track: share class (common vs preferred), price per share, vesting status, and any restrictions. Update it whenever you issue new shares, grant options, or close a funding round. Keep it accurate from day one because cleaning up a messy cap table later is expensive and delays fundraising.