OnlyOnce

FEBRUARY 1, 2024

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. The post The Dowry appeared first on The Startup CEO blog. That’s right, not only do you not have to put cash OUT for the deal, you’re getting additional cash IN.

Cap Table 71

Cap Table Common Stock Acquisition Stock 71

ithacaVC

SEPTEMBER 4, 2011

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. That person is typically the inside finance person, but it does not really matter who so long is it is always current.

Cap Table 49

Cap Table Finance Option Pool Warrant 49

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” of startups raise VC. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Hunter Walker

MARCH 15, 2018

Reflecting on Jennifer’s assertion, I thought of our experience with theSkimm , one of the most dynamic audience companies out there today and a startup we were fortunate to first back in 2013. Over the past five years, I’ve witnessed theSkimm be underestimated by the venture capital industry, by pundits and press.

Technical Review 71

Technical Review Cap Table Venture Capital Finance 71

ReadWriteStart

SEPTEMBER 2, 2011

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. As Steve Blank explained earlier this week on ReadWriteStart from research at The Startup Genome Project : One of the biggest surprises is that success isn't about size of team or funding.

Cap Table 125

Cap Table Term Sheet Liquidation Preference Technical Review 125

Both Sides of the Table

SEPTEMBER 16, 2010

I know some people think the whole market has been disrupted and startups and funding work differently these days. Deep pockets – In the previous posts I’ve compared tech startup investing with poker taking analogies of The Big Short & Delivering Happiness. Tags: Startup Advice Tech Market Analysis VC Industry.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

This is going to be BIG.

MAY 4, 2022

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. I’m a straight white dude who grew up in NYC and worked in finance. How about a Middle Eastern Prince that kills journalists (directly or through a Kushner)? Drug kingpin?

Cap Table 163

Cap Table Cofounder Private Equity Finance 163

VC Adventure

AUGUST 15, 2018

It was and is imprecise science but – at least in the case of venture backed startups – there wasn’t much harm in an option being priced low. These reports are generally quite lengthy and not always particularly comprehensible to non-finance professionals. I was wrong.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Hunter Walker

AUGUST 8, 2023

The number of startups who raised money beyond the ‘Unicorn’ benchmark grew so dramatically before the 2022 reset that there is just simply farther to fall when many of these fail to grow into their targets, or disappear completely. Valuations. Whatever gets reported is just the tip of the iceberg.

Portfolio 98

Portfolio Cap Table LP Valuation 98

OnlyOnce

DECEMBER 1, 2021

Lots of startups have nothing more than an outsourced bookkeeper or one junior staff accountant. As startups scale, they are likely to hire a more senior accountant, maybe an AR/AP/Collections staff member, or even a Controller or VP Finance. What comes before a full-fledged CFO? Posted on the Bolster Blog here ).

Hiring 117

Hiring Cap Table Finance Equity 117

Business Plan Blog

NOVEMBER 13, 2013

Most startup founders do not have enough capital to launch their companies and need to raise money at some point. Individual investors who provide financial funding to startups are called ‘Angel Investors.’ Convertible Debt Financing. Convertible debt provides startups with a relatively easy way to procure financing.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

Hunter Walker

SEPTEMBER 15, 2023

So when I tell you what I’m seeing in venture financing these days if you disagree with me, it might just be that we’re touching different parts of the elephant. Like parenting a toddler coming off a sugar high, the last 18 months of startup activity has been marked largely by tears, shrieks, and occasional throwing of toys.

Cap Table 93

Cap Table Valuation Salary Seed Stage 93

keen.io

FEBRUARY 5, 2013

How I negotiated my startup compensation. When I started thinking about joining Keen, I quickly realized there is a lot I don’t know about startups. I knew enough to know I wanted to join a startup. To be honest, I knew I wanted to join this startup. Startup Equity for Early Employees. Michelle Wetzler.

Salary 50

Salary Equity Startup San Francisco 50

Both Sides of the Table

OCTOBER 7, 2014

5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. If you want a great primer on how the VC and startup funding scene changed here’s a great primer. It is less about actual money and more about structure of your Cap Table. Startup Lessons'

Cap Table 399

Cap Table Silicon Valley Term Sheet Finance 399

David Teten

AUGUST 19, 2019

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US. We agree on a Return Cap which is a multiple of the initial investment (typically 3-5x). “We

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

AUGUST 2, 2014

Like inside bridge rounds where investors want to protect themselves from the company getting sold prior to the next financing and leaving the bridge funding without adequate returns. Startup Lessons' What should the right return be in this case? It’s not an easy question even thought there are industry standards.

Cap Table 346

Cap Table Cofounder Stock Acquisition 346

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Pascal's View

JULY 9, 2017

Unfortunately, what the CEO/founder forgets most often is that the notes have a multiplier effect in the post-money calculation; the more notes and the further the cap is from the new priced equity, the greater the variance between actual and nominal pre- and post-money valuations. It will be worth the time and effort. Sound simple?

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Gust

OCTOBER 8, 2014

Cautionary note: No competent VC is actually fooled when you show up after raising $6M in seed financing and say you’re now raising an A! 5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. It is less about actual money and more about structure of your Cap Table.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Up and Running

SEPTEMBER 20, 2021

This is all incorporated into a document called a Cap Table. . A cap table will help you in the strategic management of business decisions. Wondering what a cap table is, its importance, and how you can maintain it to expand your business? What is a cap table? Let’s dive in.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

View from Seed

OCTOBER 15, 2014

Over the summer, based on feedback from our portfolio and the broader startup community, NextView created pre-formatted board deck templates for seed-stage startups — part of our Growth Guides series. Finance is mission critical, for instance – it just appears on a recurring basis.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

OnlyOnce

MAY 26, 2022

So, getting this role right is one of the most important tasks of any startup team. Do you spend a lot of your time dealing with finance-related issues like fundraising, debt, investors, or cap table questions? The post Signs Your CFO Isn’t Scaling appeared first on The Startup CEO blog. Trust your gut.

Cap Table 62

Cap Table Forecast Finance Metrics 62

Hunter Walker

MARCH 14, 2019

You almost spit out your coffee when she lets you know that she’s leaving for a Tier 1 firm but that her partners John, John Jr or Robert will be great stewards of your startup until she has the pull at her new gig to lead your next round. Below I’m really talking about startups between Seed – Series B.

Cap Table 95

Cap Table Dilution Silicon Valley Portfolio 95

Altgate

JUNE 25, 2012

Choe’s equity is a headline-grabbing example of “dead equity”: equity owned by people who are no longer actively working for the startup. Every share of dead equity could have been redeployed as incentive for a current or future contributor to grow the value of the startup. Dead equity has always been a significant issue for startups.

Equity 44

Equity Vesting Cap Table Technical Review 44

www.readwriteweb.com

DECEMBER 29, 2011

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. Earlier this week on ReadWriteStart, Steve Blank used research at The Startup Genome Project and explained: One of the biggest surprises is that success isn't about size of team or funding.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

David Teten

NOVEMBER 14, 2019

That said, venture capital is just one of many options to finance your business, and it’s typically the most expensive. The first step is to decide the right capital structure for your financing. Braavo specializes in financing app companies. The broader question is: what type of capital should you raise, and from whom? .

SBIC 60

SBIC SBA Cap Table Database 60

Haystack

OCTOBER 2, 2019

Those of us in the early-stage tech ecosystem by now well know that saying “there are a LOT of seed and new startups” is a gross understatement. ” Startups, don’t outsource your BD. Part of being a founder is simply about being able to finance the operation. It wasn’t directed at anyone.

Deal Flow 106

Deal Flow Cap Table Early Stage Institutional Investors 106

Altgate

AUGUST 25, 2012

Choe’s equity is a headline-grabbing example of “dead equity”: equity owned by people who are no longer actively working for the startup. Every share of dead equity could have been redeployed as incentive for a current or future contributor to grow the value of the startup. Dead equity has always been a significant issue for startups.

Equity 28

Equity Vesting Cap Table Technical Review 28

The Equity Kicker

MARCH 21, 2017

It’s fashionable in certain quarters now to slate some of the billion dollar startups that have been created recently and the investors that helped them get there. Five of the six largest companies in the world today were venture backed startups and just about all net new job creation comes from young companies.

San Francisco 90

San Francisco Cap Table Angel Investor Valuation 90

Hunter Walker

APRIL 24, 2017

What outsiders don’t realize is that much of the most intriguing seed startups go through a financing process that’s “dark” – not seen by most investors because it’s either competitively privileged to a few firms or so against traditional patterns that the walk is more random.

Cap Table 71

Cap Table LP Seed Stage Vertical 71

Feld Thoughts

AUGUST 28, 2015

I characterized the situation as “silly” and specifically didn’t call out the people as my goal was to be instructive around the startup landscape, not to complain (we are big boys and will deal with whatever) or to try to generate a different outcome. I accepted what happened, wrote my post, and moved on.

Cap Table 70

Cap Table Seed Stage Angel Groups Dilution 70

OnlyOnce

FEBRUARY 9, 2022

On the heels of the announcement we made last month about our Series B financing , we are now announcing the launch of a new program called Bolster Prime and a new venture capital fund called Bolster Ventures. worked as advisors and mentors to numerous early stage founders and startups. This is another big week for us at Bolster.

Silicon Valley 62

Silicon Valley Venture Capital Cap Table Early Stage 62

BeyondVC

NOVEMBER 17, 2016

This is awesome not just for us but also for enterprise startups in NYC. West coast founders now fully understand why having a NYC investor on their cap table pays huge dividends and west coast VCs are regularly leading Series A and B rounds in NYC. Having more capital will only further our mission, not change it.

Cap Table 60

Cap Table Cofounder Dividend Institutional Investors 60

OnlyOnce

JULY 26, 2018

Or you negotiate the highest possible valuation from a new lead investor, only to discover that new lead investor, now on your Board, expects you to triple it in four years and is way out of alignment with the rest of your cap table. On the other side, what’s an example of a “good” loss?

Cap Table 61

Cap Table Lead Investor Valuation Reputation 61

Both Sides of the Table

FEBRUARY 8, 2016

Much has changed in the past four months of the technology startup world and how outsiders value the business. The terrible consequence is that some great companies struggle to get financed. If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

ithacaVC

FEBRUARY 1, 2018

It is highly typical for a startup to have small investors on its cap table. The treatment of the friends, family and angels (FFA) as the startup matures and raises larger rounds of financing over time is interesting. Startups often get stuck, restart, pivot/change/move, etc., Here is a quick guide.

Preemptive Right 45

Preemptive Right Cap Table Valuation Dilution 45