Model Equity Logic, Contribution Fairness, Vesting, and Dilution
Evaluate founder and early contributor equity allocations to ensure historical contributions match future value creation commitments. Construct a comprehensive cap table scenario that models reverse vesting schedules, cliff periods, and multi-round dilution impact from grant match-funding to equity rounds.
Completing this action establishes a defensible, fair equity distribution framework that aligns long-term founder incentives. It prevents future cap table friction and ensures early equity distribution does not compromise institutional investor readiness.
The founder must deliver an interactive cap table model demonstrating vesting mechanics, contribution valuation logic, and dilution sensitivity across upcoming investment rounds. The model must include clear founder vesting terms, IP assignment confirmations, and option pool allocations.
Five questions an expert would ask when reviewing your output
Use these to challenge assumptions, pressure-test your logic, and check the quality of this action's output in the context of the parent task and wider venture development.
- 1
What explicit methodology was used to value historical non-cash contributions against future equity entitlement?
- 2
How does your proposed vesting schedule protect the venture if a key co-founder departs before the next funding gate?
- 3
What is the impact of grant match-funding equity requirements on founder dilution over the next two rounds?
- 4
How will institutional investors view your current cap table structure and unvested equity allocations?
- 5
Why is your proposed unallocated option pool size sufficient to attract senior talent without unduly diluting current holders?