# Cap table review
> Source: https://legalcode.md/skills/legalcode-cap-table-review | [HTML version](https://legalcode.md/skills/legalcode-cap-table-review)

Review, audit, and model cap tables for US startups at any stage — covering SAFE mechanics (post-money vs. pre-money conversion, MFN, pro-rata), convertible…

Review, audit, and model cap tables for US startups at any stage — covering SAFE mechanics (post-money vs. pre-money conversion, MFN, pro-rata), convertible note conversion (discount, valuation cap, shadow preferred, interest accrual), option pool sizing and the option pool shuffle, anti-dilution adjustments (broad-based weighted average, full ratchet, narrow-based, pay-to-play, NVCA carve-outs), liquidation waterfall modeling (non-participating, participating, participation cap, liquidation multiples), and dilution scenario modeling across rounds. Identifies cap table errors, missing shadow preferred mechanics, incorrect fully diluted counts, and structural red flags. Benchmarks against NVCA October 2025 model documents and current market standards. Also triggers on: SAFE overhang, option pool shuffle, anti-dilution down-round modeling, founder dilution analysis, fully diluted share count, pre-money and post-money ownership, 409A cap table implications, QSBS eligibility check, warrant overhang, shadow series mechanics, liquidation preference overhang, Series A cap table review, cap table due diligence, Carta / Pulley export review, and conversion scenario modeling ahead of a priced round, M&A, or secondary transaction.

This skill reviews and audits startup cap tables end-to-end. It identifies structural errors, models conversion and exit scenarios, benchmarks terms against market standards, and flags issues with classified severity for founders, investors, and counsel. **Covers:** - SAFE mechanics: post-money vs. pre-money conversion, MFN clause triggers, pro-rata rights, SAFE overhang analysis, and aggregate dilution modeling - Convertible note conversion: discount rate mechanics, valuation cap mechanics, lower-of selection, interest accrual, and shadow preferred stock structuring - Option pool: sizing, the option pool shuffle and its founder dilution impact, Rule 701 compliance thresholds, and vesting schedule review - Anti-dilution: broad-based weighted average (BBWA) formula verification, narrow-based weighted average, full ratchet detection, pay-to-play provisions, and NVCA carve-out completeness - Liquidation waterfall: non-participating preferred, participating preferred (with and without cap), liquidation preference multiples, cumulative vs. non-cumulative dividends, and exit scenario modeling - Dilution modeling: fully diluted share count verification, pre-money / post-money ownership calculations, multi-round dilution projections, and conversion scenario analysis - Regulatory flags: 409A cap table implications, QSBS eligibility check (IRC § 1202), Rule 701 threshold monitoring, Reg D documentation status - Cap table hygiene: documentation gaps, warrant overhang, SAFE-to-cap-table reconciliation, and pre-diligence clean-up requirements **Does not:** - Draft or amend equity instruments — ...

## Jurisdictions

Global



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