Cap Table Management for Founders: Carta vs Pulley vs Spreadsheet — How to Choose
A messy cap table causes problems that show up at the worst possible moments — during due diligence, at a Series A, or when an early employee tries to exercise options. The question is not whether to manage your cap table carefully, it is what tool is proportionate to your current complexity and stage.
READY TO TAKE ACTION?
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The Quick Answer
Use a spreadsheet until you close your first priced round or issue more than 10 stock option grants. Switch to Pulley when you want a cost-effective professional tool that does not over-charge early-stage companies. Switch to Carta when your investors require it, when you need a 409A valuation integrated with your cap table, or when you approach Series B complexity.
Side-by-Side Breakdown
Spreadsheet: Free. Works fine for pre-seed and simple SAFE rounds. Error-prone at scale. Not legally acceptable as a record of ownership — you need actual stock certificates or option agreements regardless.
Pulley: Starts at $500/year (Seed plan). Clean UI, scenario modeling, 409A valuations, and investor portal. Specifically designed for early-stage companies priced below Carta. Strong fundraising scenario modeling.
Carta: Starts at $2,400/year (Launch plan, limited). The industry standard — most Series A+ investors expect it. 409A valuations, option management, secondary transactions, and fund administration. Expensive at early stages but required by many institutional investors.
When to Use a Spreadsheet
You are pre-seed with founder shares only and no option plan yet. You have raised one or two SAFEs and no priced round. You have fewer than 5 equity holders. Your lawyer maintains the actual option agreements and stock certificates — the spreadsheet is just your tracking tool, not the legal record.
When to Choose Pulley
You have closed a priced round and need a professional cap table that investors can access. You are building an option pool and issuing grants to 5-20 employees. You want scenario modeling for future rounds without paying Carta's pricing at an early stage. Pulley's pricing is materially better for companies under $5M raised.
When to Choose Carta
Your Series A lead investor requires Carta (many do). You need 409A valuations integrated with your cap table to ensure your option grants are priced correctly and defensible to the IRS. You are approaching Series B complexity with secondary transactions, multiple share classes, or a large option pool. You have a finance team that will manage equity administration as a regular function.
The Verdict
Pulley has built a compelling product for early-stage companies that Carta historically underserved on pricing. If you are closing a seed round and building an option plan, start with Pulley. Migrate to Carta when institutional investors require it or when your complexity justifies the cost. Do not stay on a spreadsheet past your first priced round — the error risk and the impression it makes on investors are both problems.
How to Get Started
Spreadsheet: Use the FAST (Founders' Agreement on Simple Terms) template or build a basic cap table with columns for shareholder name, share class, shares/options, and percentage ownership. Update it every time equity changes hands.
Pulley: Start at pulley.com. Import your existing cap table or start from scratch. Connect your legal documents for each equity grant.
Carta: Start at carta.com. Carta's onboarding team will help migrate your existing cap table. Budget 2-4 weeks for a complete migration from a spreadsheet or Pulley.
RECOMMENDED TOOLS
Carta
Equity management and 409A valuations
Pulley
Affordable cap table management for early-stage startups
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FREQUENTLY ASKED QUESTIONS
What is a 409A valuation and why do I need one?
A 409A valuation is an independent appraisal of your company's common stock fair market value. You need it to price your stock options. If you grant options at a price below fair market value, employees face immediate tax liability and IRS penalties. Get a 409A before issuing your first option grant and refresh it annually or after material events.
What is an option pool and how large should it be?
An option pool is the block of shares reserved for employee equity compensation. Typical pool sizes: 10-15% of fully-diluted shares at pre-seed, 15-20% before a Series A (investors often require a top-up). The pool is dilutive to founders — create it thoughtfully and model the dilution before your next fundraise.
Do SAFEs appear on my cap table?
SAFEs appear as a note in your pre-money cap table, not as shares — they convert to shares in the next priced round. Your post-money cap table should model the SAFE conversions so you can see the fully-diluted ownership picture before closing a priced round.