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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. Bring Praveena in as a founder and offer 10-20% of the company as stock.

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

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. Investors own 25%, the founders own 75%. Investors will always want to get their money out of the company before founders, which in the case where the company is sold for a low price is fair.

Valuation 405
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Advice for CTO Founders: Don't Let Business Kill the Business

www.informationarbitrage.com

Main February 23, 2010 Advice for CTO Founders: Dont Let Business Kill the Business Founding a technology company is an amazing thing. Too often, however, I have found CTO / Founders paired with business people who not only don't add value, but frequently detract from the value of the business.

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Reblog – Finance Fridays (Introducing the Cap Table and CTO)

ithacaVC

Here is the latest edition of Finance Fridays from Brad Feld called “Introducing the Cap Table and CTO” Every startup needs someone to be in charge of the Cap Table. When I was General Counsel at a tech company during the 1999 bubble times, I kept the company’s Cap Table.

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AngelList Syndicate Feedback From An Experienced Entrepreneur

Feld Thoughts

The CEO and founder, Steve Olechowski , was co-founder / COO of FeedBurner, which Google acquired in 2007. 2) Keeping the number of entries on our cap table relatively small. We recently funded Blinkfire Analytics using our FG Angels Syndicate. 2) Ability to diversify their funds without a huge minimum ticket.

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Advisors aren’t pokemon (but they are magical)

The Startup Toolkit

If the founding team is non-technical and you can’t figure out whether you are being screwed by your developers or whether your potential new CTO is amazing, a tech advisor can help by joining you in interviews and reviewing commits. You probably don’t need to get the cap table involved in that.

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10 Startup Red Flags

adamac.blogspot.com

Adam MacBeth Tuesday, April 07, 2009 10 Startup Red Flags Ive worked on a number of startups: from seed-stage through IPO, as a founder, employee, advisor, and consultant, as well as evaluating a bunch from the outside, so Ive seen my share of screw-ups. Ever met a CTO/VP Engineering or CEO/CTO? Adamac Attack! Yeah me neither.