Raise Millions by Hustle Fund VC Page 36 you’ll have a fully diluted cap table where everyone who was allocated shares will indeed get all their shares. If investors are investing on a SAFE, they technically do not own shares at that point. Remember the last chapter? Investors using SAFEs will have a ticket to claim the pizza later, but not actually own the slice in that present moment. So these investors will NOT be added to the cap table until their SAFEs/notes convert into actual shares. This is another reason why founders don't realize how much of the pie everyone owns. There are investors who have invested money but aren’t technically on the cap table yet. We recommend founders use Pulley (a plug for one of our portfolio companies), which makes cap tables super easy to understand even if someone invested through SAFEs. When you raise money from investors, they will often ask you to create an employee stock option pool (ESOP). This means setting aside some shares for your employees to incentivize them to stay longer and do great work. Investors typically expect founders to set aside 10% of the pie for ESOP but this percentage amount can be negotiated. 15 years ago, this percentage was typically 15-20%, and we may revert back to that if the markets get worse. An ESOP can dilute the cap table faster than you might expect. For example, if you’re being diluted down by 20% by the next round of hustlefund.vc / @hustlefundvc