Insights·How-to

How to read your cap table and understand your ownership percentage

Your offer letter says 10,000 options — but what percentage of the company is that? We explain cap tables, fully diluted shares, and why the percentage matters more than the number.

2025-03-22 · 6 min read
Article from 2025-03-22 — valuations have moved since

This piece references valuations and round details as they stood at the time of writing. For the current 4-method estimate, see the company pages — refreshed monthly.

Key takeaways
  • Your offer says 10,000 shares; what matters is what percentage of the fully-diluted cap table that is.
  • Ask for total fully-diluted shares outstanding to convert your grant to a percentage.
  • 10,000 / 100M = 0.01%. The same 10,000 / 50M = 0.02%. Twice as valuable.

Your offer letter gives you a share count. Without a denominator — the total fully-diluted shares outstanding — that number is meaningless. 10,000 shares at OpenAI (1.34B FD) is 0.0007% of the company. 10,000 at a Series B startup (50M FD) is 0.02% — almost 30× more ownership.

What 'fully diluted' means

Fully diluted (FD) share count includes:

  • All outstanding common shares
  • All outstanding preferred shares (converted to common)
  • All vested AND unvested options
  • Unallocated option pool (reserved for future hires)
  • Convertible notes and SAFEs (assumed converted)

Why companies don't always disclose this

Private companies are not required to share their cap table. Many will tell you total FD shares if you ask. Some will only tell you the current outstanding count (excluding unallocated pool), which paints a more flattering picture of your percentage.

In an offer negotiation, ask: 'What's the total fully-diluted share count, and what's the allocated vs unallocated option pool?' If you only get one number, ask for the breakdown.

Want a number for your specific grant? The calculator runs the same engine referenced in this article.

Open the calculator →