Feld Thoughts

FEBRUARY 9, 2016

“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. Deal with reality as a founder as well as an investor group and avoid this complexity – just clean up your cap table instead.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Feld Thoughts

APRIL 16, 2019

Hunter has a great lead in: “ Here’s where I think founders and cap tables should be more proactive. He covers three cases: Bullish aka You Are Absolutely Killing It Written You Off Too Early To Tell – Some Good Stuff, Some Challenges But A Lot To Do. The real gold in this post is in the Too Early To Tell category.

Cap Table 82

Cap Table Founder Conversion Email 82

Feld Thoughts

JULY 5, 2015

Then acquires started using the concept of acquihire to try to shift consideration away from the cap table and instead increase the amount of “retention consideration” going to the remaining employees, independent of the capitalization of the company.

Acquisition 70

Acquisition Cap Table Framework Retention 70

Feld Thoughts

JUNE 2, 2015

This mess is especially yucky if the lawyers don’t focus on the final cap table and the capitalization opinion until the last few days of the process.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

Feld Thoughts

JULY 14, 2015

It usually happens in a later round, when the company is in fact worth much less than the liquidation preference overhang and insiders use a pay-to-play and a low valuation to reset the preferences and the cap table. It’s not pretty, but it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70