Who’s on your cap table matters more than you think.
In a world where capital is abundant, it’s easy to forget that not all money is created equal. Founders are often pushed to think in terms of valuation and speed—who can close fastest, who offers the highest terms. But when you reduce capital to a commodity, you risk diluting more than just your ownership. You dilute your control, your focus, and ultimately, your company’s potential.
At Paligan, we believe that a founder’s cap table is one of their most strategic assets. And it should be treated as such.
More Than a Ledger
Your cap table isn’t just a record of who owns what. It’s a reflection of your company’s trajectory, who you’ve brought along for the journey, and what each of them brings to the table beyond money.
Too often, we see rounds filled with investors who offer little more than a check. No engagement. No strategic input. No conviction. It’s less challenging to raise money from people who follow momentum. But when things get difficult—and they will—only aligned investors stick around.
The Cost of a Crowded Cap Table
A bloated or misaligned cap table creates problems that compound over time:
No accountability: When everyone is a small check, no one feels responsible.
Decision gridlock: Competing interests make governance more complicated.
Exit friction: Secondary sales, recapitalizations, and M&A can stall when the investor base lacks cohesion.
The irony? Founders spend months curating their pitch deck, but often spend minutes deciding who gets on their cap table.
What Aligned Capital Looks Like
Aligned investors aren’t just writing checks; they’re building conviction. They:
Understand your business, not just the trend it sits in
Ask the hard questions before and after the investment
Stay actively informed but don’t micromanage
Share your time horizon and risk tolerance
This kind of capital is rare, but it’s worth waiting for.
Choosing the Right Investors
Founders should treat investor selection like hiring a key executive. You’re bringing someone into your company, not just into your round.
Questions worth asking:
What’s your investment horizon?
How do you engage with your portfolio companies?
Have you led follow-ons in companies you backed before?
Can I speak to a founder you’ve worked with during challenging times?
The answers will tell you more than a name on a firm’s website ever could.
How We Approach It at Paligan
We invest deal by deal. That means we don’t have quotas to hit or funds to deploy. We choose to invest only when the opportunity earns our conviction.
When we commit, we’re all in:
We perform rigorous due diligence
We structure the deal to fit the company, not our portfolio
We bring aligned co-investors who share our long-term view
It’s not just about joining a round. It’s about contributing to its success.
A Better Cap Table Is a Strategic Advantage
Founders who are intentional about their investors outperform. Why?
Because they’ve surrounded themselves with:
Strategic feedback, not noise
Investors who will follow through, not just follow on
Partners who understand timing, structure, and value creation
A cap table filled with conviction-driven capital is easier to manage, easier to align, and far more resilient in difficult times.
Choose Partners, Not Passengers
At Paligan, we don’t just invest. We commit. We sit on the cap table because we believe in the deal, not because we’re diversifying a fund.
Every founder deserves investors who are present, informed, and aligned. Because ultimately, who’s on your cap table will shape how far you go—and how well you get there.
Choose wisely.
