Cap Table Validator
Overview
The Cap Table Validator skill provides systematic validation of capitalization tables during due diligence. It verifies ownership accuracy, identifies potential issues, and models the impact of option pools and future financing on ownership structure.
Capabilities
Cap Table Verification
- Verify share counts against stock ledger
- Reconcile against Articles/Charter documents
- Check convertible instrument calculations
- Validate vesting schedules and exercise prices
Issue Identification
- Identify missing or incorrect 83(b) elections
- Flag accelerated vesting provisions
- Detect anti-dilution trigger scenarios
- Identify founder equity concentration issues
Option Pool Modeling
- Model option pool expansion impact
- Calculate fully diluted ownership
- Analyze option overhang and burn rate
- Project pool runway based on hiring plans
Convertible Modeling
- Model SAFE and note conversions
- Calculate pre-money vs. post-money impacts
- Analyze discount and cap mechanics
- Model multiple conversion scenarios
Usage
Validate Cap Table
Input: Cap table, supporting documents
Process: Verify calculations, reconcile documents
Output: Validation report, discrepancies found
Identify Issues
Input: Cap table, charter documents
Process: Check for common issues, flag concerns
Output: Issue list, severity assessment
Model Option Pool
Input: Current pool, hiring plan, grant guidelines
Process: Project pool usage, calculate dilution
Output: Pool projection, ownership impact
Model Convertibles
Input: Convertible instruments, conversion scenarios
Process: Calculate conversion outcomes
Output: Conversion analysis, ownership projections
Validation Checklist
| Category |
Key Checks |
| Shares Outstanding |
Match charter, stock ledger, cap table |
| Options |
Verify grants, vesting, exercise prices |
| Convertibles |
Terms accuracy, conversion mechanics |
| Documents |
Board approvals, stock certificates |
| Tax |
83(b) elections, ISO limits, AMT |
Integration Points
- Legal Due Diligence: Core cap table review
- Cap Table Modeler (Agent): Support agent analysis
- Dilution Analyzer: Feed validated data for analysis
- Waterfall Calculator: Provide ownership for waterfall
Common Issues
- Outstanding convertibles not reflected
- Vesting calculation errors
- Exercise price discrepancies
- Missing or late 83(b) elections
- ISO/NSO classification errors
- Incorrect anti-dilution provisions
- Conflicting document versions
Best Practices
- Request source documents, not just spreadsheets
- Verify against Carta, Pulley, or stock admin system
- Model all outstanding convertibles
- Check for pending but unexecuted grants
- Review recent charter amendments
1---2name: cap-table-validator3description: Validates cap table accuracy, identifies issues, models option pool impact4---5
6# Cap Table Validator
7
8## Overview
9
10The Cap Table Validator skill provides systematic validation of capitalization tables during due diligence. It verifies ownership accuracy, identifies potential issues, and models the impact of option pools and future financing on ownership structure.
11
12## Capabilities
13
14### Cap Table Verification
15- Verify share counts against stock ledger
16- Reconcile against Articles/Charter documents
17- Check convertible instrument calculations
18- Validate vesting schedules and exercise prices
19
20### Issue Identification
21- Identify missing or incorrect 83(b) elections
22- Flag accelerated vesting provisions
23- Detect anti-dilution trigger scenarios
24- Identify founder equity concentration issues
25
26### Option Pool Modeling
27- Model option pool expansion impact
28- Calculate fully diluted ownership
29- Analyze option overhang and burn rate
30- Project pool runway based on hiring plans
31
32### Convertible Modeling
33- Model SAFE and note conversions
34- Calculate pre-money vs. post-money impacts
35- Analyze discount and cap mechanics
36- Model multiple conversion scenarios
37
38## Usage
39
40### Validate Cap Table
41```
42Input: Cap table, supporting documents
43Process: Verify calculations, reconcile documents
44Output: Validation report, discrepancies found
45```
46
47### Identify Issues
48```
49Input: Cap table, charter documents
50Process: Check for common issues, flag concerns
51Output: Issue list, severity assessment
52```
53
54### Model Option Pool
55```
56Input: Current pool, hiring plan, grant guidelines
57Process: Project pool usage, calculate dilution
58Output: Pool projection, ownership impact
59```
60
61### Model Convertibles
62```
63Input: Convertible instruments, conversion scenarios
64Process: Calculate conversion outcomes
65Output: Conversion analysis, ownership projections
66```
67
68## Validation Checklist
69
70| Category | Key Checks |
71|----------|------------|
72| Shares Outstanding | Match charter, stock ledger, cap table |
73| Options | Verify grants, vesting, exercise prices |
74| Convertibles | Terms accuracy, conversion mechanics |
75| Documents | Board approvals, stock certificates |
76| Tax | 83(b) elections, ISO limits, AMT |
77
78## Integration Points
79
80- **Legal Due Diligence**: Core cap table review
81- **Cap Table Modeler (Agent)**: Support agent analysis
82- **Dilution Analyzer**: Feed validated data for analysis
83- **Waterfall Calculator**: Provide ownership for waterfall
84
85## Common Issues
86
87- Outstanding convertibles not reflected
88- Vesting calculation errors
89- Exercise price discrepancies
90- Missing or late 83(b) elections
91- ISO/NSO classification errors
92- Incorrect anti-dilution provisions
93- Conflicting document versions
94
95## Best Practices
96
971. Request source documents, not just spreadsheets
982. Verify against Carta, Pulley, or stock admin system
993. Model all outstanding convertibles
1004. Check for pending but unexecuted grants
1015. Review recent charter amendments
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