Cap Table Mistakes That Can Delay Startup Funding: Founder Shares, ESOP, Convertible Instruments and Past Allotments
A reliable startup cap table must reconcile issued shares with statutory registers, certificates, board approvals, allotment returns and payment records. It should also show the fully diluted effect of ESOPs and convertibles. Founder side letters, beneficial-ownership gaps and missing FEMA reports can delay a round even when the spreadsheet percentage appears correct.