Cap Table Cofounder Equity Finance 
Feld Thoughts
SEPTEMBER 2, 2011
As Finance Fridays continues, we are introducing the concept of the Cap Table. Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. This week they set out to create their cap table and hire a CTO. Time to update the cap table.
David Teten
JANUARY 19, 2021
(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Of the Inc.
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David Teten
AUGUST 19, 2019
This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control.
Altgate
JUNE 25, 2012
Re-posted from post co-authored with Prof. —————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time.
Altgate
AUGUST 25, 2012
Re-posted from post co-authored with Prof. —————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time.
This is going to be BIG.
MAY 4, 2022
For most founders, fundraising is a struggle. Would you take a check from a corporate raider whose private equity dollars come with mass layoffs and union-busting? Morality aside, I’d say given the inherent riskiness of startups, I’m not sure this would be a great addition to your cap table. Drug kingpin?
Pascal's View
JULY 9, 2017
Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. The most serious unintended consequence occurs from “note waterfalls”— converting multiple notes that have multiple valuation caps. Many entrepreneurs lose track of what they have been cooking up in the cap table.
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