A startup cap table is the complete record of who owns what percentage of a company — on a basic and fully diluted basis. This guide covers how the cap table changes from founding through Series A, how SAFEs appear before conversion, and the four mistakes that cause due diligence delays.
A founder vesting agreement makes equity earned over time — not granted immediately. Without one, a co-founder who leaves after three months keeps their full allocation. Legal Chain covers the standard four-year schedule, one-year cliff, good leaver and bad leaver mechanics, and acceleration provisions for every US state.
A SAFE — Simple Agreement for Future Equity — has no maturity date, no interest, and no balance sheet liability. It converts into preferred equity at the next priced round, at terms set by the valuation cap. Legal Chain explains every component before you issue or accept one.
Both instruments raise capital before a priced round. The SAFE has no maturity date, no interest, and no balance sheet liability. The convertible note has all three. The right choice depends on your investor, your timeline, and your cap table math. Legal Chain generates both free.
Without a founder agreement, a co-founder who leaves after three months keeps their full equity. Legal Chain's AI generator covers all eight provisions — equity, vesting, IP assignment, roles, non-compete, departure mechanics, dispute resolution, and governing law — for any US state in under five minutes.
A convertible note has a maturity date, an interest rate, and a usury ceiling — three terms the SAFE eliminates. A $250K note at 6% for 18 months converts $272,500, not $250K. Legal Chain generates state-compliant notes with full interest accrual shown before signing.
A SAFE — Simple Agreement for Future Equity — has no maturity date, no interest, and no balance sheet liability. But $100K at a $5M cap commits 2% of your company today. Legal Chain generates all four YC-standard SAFE variants with post-money dilution shown before signing.
65% of business partnerships fail over ownership, control, or exit disputes. Without a shareholder agreement, each of these scenarios resolves by negotiation under duress. Legal Chain's AI generator covers all seven critical provisions — transfer restrictions, buyout mechanics, deadlock resolution — for any US corporation or LLC.
