Both Sides of the Table

AUGUST 2, 2014

Like inside bridge rounds where investors want to protect themselves from the company getting sold prior to the next financing and leaving the bridge funding without adequate returns. What about when an acquisition takes place? What should the right return be in this case?

Cap Table 346

Cap Table Cofounder Stock Acquisition 346

David Teten

AUGUST 19, 2019

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US. We agree on a Return Cap which is a multiple of the initial investment (typically 3-5x). “We

Revenue 60

Revenue Technical Review Software Review Equity 60

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.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

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.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

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.

Salary 50

Salary Equity Startup San Francisco 50

Hunter Walker

NOVEMBER 20, 2013

Let the Syndicate handle filtering for membership – it would almost feel more like an investment club – but they would see themselves as value add angels, without the company needing to add them all individually to the cap table or hold 20 separate pitch meetings. 3) The Alternate Liquidity Syndicate.

Syndicate 98

Syndicate Syndication South America Seed Stage 98

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. 645 Ventures released a cap table simulator to help level the playing field.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

SEPTEMBER 29, 2022

So for the most part a venture investor holds their equity until the company exits via an acquisition, IPO, or some sort of other liquidity event (management buyout, whatever). You don’t bring investors on to the cap table via a secondary transaction that are going to be problematic. Pigs get fat but hogs get slaughtered.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

The Next Web

OCTOBER 7, 2013

Cap tables sound intimidating. As stated earlier, investors will dilute ownership upon nearly every round of financing. Are they especially acquisitive? From the perspective of my outside friends, why are employees that so clearly impact the growth trajectory of a company look like they’re getting screwed? N: exit size.

Engineer 129

Engineer Dilution Option Pool Vesting 129

www.payne.org

SEPTEMBER 22, 2011

Common stockholders should care about the preference, because that preference is "ahead" of the commons in any acquisition outcome. Some vesting plans may accelerate vesting for certain events, such as an acquisition. The other factor is the "cap table" (capitalization table, or summary of who owns what stock).

Equity 56

Equity Employee Vesting Preferred Stock 56

Rob Go

FEBRUARY 24, 2014

Like everyone else, I was very impressed by Facebook’s $16B+ acquisition of WhatApp. This financing probably came out the Sequoia US Venture fund and Growth fund, which are separate entities, but I believe represent a pool of capital somewhere in the neighborhood of $1.2B. This post is a bit of inside baseball, but bear with me.

Cap Table 78

Cap Table Valuation Finance Institutional Investors 78

venturehacks.com

OCTOBER 21, 2010

Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# Update : Check out our $9 cap table which calculates the effect of the option pool shuffle on your effective valuation. share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

abovethecrowd.com

JUNE 2, 2021

Could we offer a “dial” to issuers and let them (and perhaps their ad agencies) decide? * * For GS.com , EXCLUSIVE access to GS hot deal might be a critical competitive tool to keep customer acquisition costs low and encourage larger clients to more to our site from a competitor’s. Party B: The investment banks.

IPO 82

IPO Customer Matching Silicon Valley 82