# Capitalization Table [The Basics of a Capitalization Table | AlphaTech Counsel, S.C.](https://www.youtube.com/watch?v=uYhyZ02YDoI) - Calculating - Investors put some money in, and request some percent of the company after that. - Based on these ratio, issue new shares to the investor. - Existing holders' shares are **diluted** - Shares for founders, and a vesting plan - "Simple Agreement for Future Equity" (= SAFE) by Y Combinator - Valuation Cap -- convert investment to equity at this cap, if the company is valued more than the cap. - Most favored nation treatment for investor - A discount -- convert investment into shares at a discounted rate.