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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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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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Cap Table Clean Up

ithacaVC

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. Let’s assume that Founder X owns 800,000 shares of common stock and Founder Y owns 1,300,000 shares of common stock and that the option pool in total has 356,758 shares allocated (to make the total stated above).

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

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The Dowry

OnlyOnce

Here’s one to keep in mind – we did this a few times at Return Path, and I was just reminded of it when I was coaching another founder who is doing the same thing right now. Why would the cap table of the target company agree to this? But think of it as a tool in the M&A/financing tool belt.

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That convert you raised last year is a part of your cap table

VC Adventure

Given the prevalence of convertible debt as a seed financing instrument, an increasing number of companies we look at have some kind of convert in place. This is typically reflected on cap tables in a completely separate tab to the spreadsheet that shows the debt total by investor and then some kind of interest calculation.

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Giving Visionary Women Their Due

Hunter Walker

While reading Brotopia, we were also helping theSkimm finish up their new financing , with Google Ventures and Spanx founder Sara Blakely joining the cap table. During that time I’ve heard many male media founders lauded as “visionary” – Jonah Peretti, Shane Smith, Bill Simmons.