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Cap Table Explained — What is it and How to Maintain it for Investors

Up and Running

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
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In 2017, GE Will Buy More Tech Startups Than Google

Hunter Walker

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.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

“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. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame.

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The Dowry

OnlyOnce

Sometimes when you’re doing a strategic acquisition and it’s an all-stock deal, you can insist as a term of the acquisition that the target company’s investors invest more capital into your company. Why would the cap table of the target company agree to this?

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Angel Investing 4 – Why You Need Deep Pockets to Win Big

Both Sides of the Table

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. This is actually the norm. But it is. So know that going in.

Cap Table 283
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” 15-20% sold per round.

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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

The reality is lots of companies – many of them quite promising – have already undergone, or will be facing, next financings which “clean up” old cap tables. Soft Acquisition Market. Whatever gets reported is just the tip of the iceberg. And that’s what’s happening here.