Cap Table Conversion Finance Valuation 
Both Sides of the Table
JULY 23, 2014
We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. The “big boom” in startup financing started around March 2009?—?more Where are we today? .” more than 5 years ago?—?and and hasn’t abated.
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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ithacaVC
DECEMBER 13, 2013
When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. The share price is calculated by taking the pre-money valuation and dividing it by the number of shares outstanding pre-money. So Share Price (SP) = Pre-Money Valuation (PMV) / Shares Outstanding (SO).
David Teten
JANUARY 19, 2021
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. Further reading: The Evolution of Entrepreneurial Finance: A New Typology. Flexible VC: Compensation-based. Flexible VC: Blended Return.
View from Seed
SEPTEMBER 23, 2019
To provide relevant perspective, listing past convertible note(s) and/or equity financing(s) including total round size and valuation (caps) is helpful. Previous venture firms’ specific involvement on the cap table should be noted here, though. What not to include is directly stating valuation expectations.
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?” Valuations. ” That is, for the class of funds institutional LPs tend to back, on average, where was bottom?
Pascal's View
JULY 9, 2017
This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. Many entrepreneurs lose track of what they have been cooking up in the cap table.
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