A new lead investor wants to see your cap table before signing the term sheet. Your existing investors signed under specific terms that they wouldn't want the new lead to know — particularly the discounts they got.
Proper redaction lets you show structure without revealing specifics.
What to redact
Existing investors' specific check sizes, valuation caps, discount rates, and side letter terms. Keep visible: the total amount raised, number of investors at each round, post-money valuation, and the overall ownership structure. The new investor needs to assess dilution and structure — they don't need every existing investor's specific deal.
Proper redaction technique
Use redact PDF so the text underneath is removed, not just covered. Test the output — selecting in redacted regions should return nothing. This is essential when redacting financial information. Fake redaction here is worse than no redaction.
Aggregate where possible
Rather than redacting individual investor entries, consider rebuilding the cap table to show aggregated angel rounds, lead investor positions, and option pool. Aggregated views satisfy due diligence without exposing individuals. Use Excel and convert to PDF for the aggregated version.
Disclose what's redacted
Don't try to hide the fact that you've redacted. Note clearly: "Existing investor terms redacted for confidentiality. Available under additional NDA." Investors expect this. Trying to hide redactions raises suspicion.
FAQ
Will investors accept a redacted cap table?
For initial diligence, yes. For final term sheet stage, expect them to require full visibility — typically under an additional NDA.
Should I redact employee option grants?
Aggregate to the pool size rather than individual grants. Specific grants are personnel matters and rarely material for investors.
Is search-and-redact safe for investor names?
Use it as a starting point, verify visually. Names appear in tables, signature blocks, and footnotes in different formats.
Can existing investors require their information be redacted?
If their confidentiality is contractually protected (in side letters), yes. Check existing agreements before sharing cap table details.
Selective sharing without leaks. Redact in Flint and your existing investors stay content.