Both Sides of the Table

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

How Complicated is Your Cap Table? Cap Table issues are seldom understood by entrepreneurs. If you raised a $2 million seed round at a $6 million pre then a $5 million A-round at a $20 million pre then a $20 million B-round at a $80 million pre and if your company has stalled you may have a cap table problem.

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How Much Information Should you Give VCs for Due Diligence?

Both Sides of the Table

They want to see your cap table, your legal documents, your major contracts, your full financial model, etc. There is no reason to part with your cap table or legal docs until you’re convinced that they’re actually committed to doing work with you in due diligence. In my opinion that is totally old school.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc. So how does this work in practice? Entrepreneur : “Sure.

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The Changing Structure of the VC Industry

Both Sides of the Table

It’s hard to work out the cap table with your peers when one of them has no real intent in fixing the problem. We saw this movie already after the dot-com collapse and the sequel will be no different. Publics sold many of their positions to secondary investors.

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

Both Sides of the Table

And if you’re not busy being crushed (diluted) you might not notice that the people above you in the cap table (e.g. I’m not defending this behavior – sometimes it is appropriate, sometimes it is not. But it is. So know that going in. Only deep pockets can protect this from happening.

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How Many Angels is the Right Amount for a Startup to Have?

Both Sides of the Table

If you have 50 investors on your cap table – I’m sorry but you really don’t know what the f**k they’re telling people about your company or whom they’re tell it to. He argues that transparency is right morally (they took a risk) and to get better quality advice. I agree up to a point.

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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation.

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