➡️ 1. Your cap table is not just a ledger, it’s latent math. Most teams treat it as a record of past transactions. In reality, it’s the foundation for modeling how value will flow in the future. ➡️ 2. Breakpoints are the cap table in future tense. A breakpoint is the moment when the next dollar of value switches lanes to a different share class. Ownership today. Distribution tomorrow. ➡️ 3. Value allocation is not linear. Preferences, participation rights, ESOP, SAFEs, warran

Most founders and investors treat the cap table as a static artefact, a tidy ledger of who owns what, how much they paid, and how those numbers stack up today. Useful, yes, but also deeply incomplete. Over the past months I’ve written a lot about fair value and how it offers a window into what might be , not just what is. Recently people have asked me: “If you’re doing this for VCs, what about the other side of the equation - the company?” The Traditional View: A Backward-Loo