Acquisition Cap Table Conversion Finance 
Hunter Walker
JANUARY 2, 2017
This keeps them aligned with their investors since a $250m exit with modest venture financing raised can be wonderful for all parties, but the same transaction can look awful if your last round was $60m on $300m pre! Here the acquisition becomes more metric-driven and the assumptions around growth and multiples drive the offer.
Feld Thoughts
FEBRUARY 9, 2016
Much of it is very short term focused and, like a giant tractor beam, draws the conversation into a very short time horizon (as in days or weeks). “If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier” Again, go read the post now – I’ll wait.
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David Teten
JANUARY 19, 2021
The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Yes, via conversion rights at a valuation cap. 2-5x return cap + path to uncapped equity returns. Yes, via conversion rights at a valuation cap. Yes, typically preferred equity.
Hunter Walker
AUGUST 8, 2023
Satya and I were having lunch (yummy Chinese food) with our LPAC and the conversation turned to generally “how much more did venture portfolios have to fall before they found their true current value?” Soft Acquisition Market. Whatever gets reported is just the tip of the iceberg.
Business Plan Blog
NOVEMBER 13, 2013
The first milestone in a new startup’s financing is called ‘Seed Capital’ which refers to the initial investment raised by the founders from their friends and family, or commonly referred to as FFF (Friends, Family and Founders), who mostly use their personal assets. The return only happens when there is an exit via acquisition or an IPO.
Up and Running
SEPTEMBER 20, 2021
This is all incorporated into a document called a Cap Table. . A cap table will help you in the strategic management of business decisions. Wondering what a cap table is, its importance, and how you can maintain it to expand your business? What is a cap table? Let’s dive in.
keen.io
FEBRUARY 5, 2013
To begin answering this question, I started on a quest to understand startup financing. This book was written to help founders negotiate financing with investors, but it really helped me understand Keen’s financial situation, and I highly recommend it to anyone joining a startup. First, I read Venture Deals by Brad Feld.
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