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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. Praveena is just like the other two founders, where her equity will vest over 4 years.

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Early Stage Advisor Equity Grants

Eric Friedman

I have been on both sides of the cap table of advisors. An underutilized action by founders is canceling their vesting due to lack of interaction or help with your company. Having them on your cap table, or even in your slide deck as an advisor would bring you credibility.] Some are there the entire time.

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The Introvert Economy, the Case for Longer Founder Vesting Cycles, What Happens When Your Product Goes Viral on TikTok, and More [link blog]

Hunter Walker

Founder Vesting [Jared Hecht/USV] – Jared joined USV earlier this year and it’ll be interesting to see how his writing changes as he adds ‘institutional VC’ to his founder and angel investor knowledge. Stretching things out to a six-year vest helps to prevent co-founder abandonment. That sucks for everyone.

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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. On a fully diluted pre-money basis, that would mean the option pool represents 14.5% (356,758/2,456,758) of the cap table. That is fine, and should be in the form of option grants vesting over time.

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Is Dead Equity Crippling Your Company?

Altgate

Instead, the dead equity languishes on the cap table, weighing down the startup and making it harder to attract and motivate the people who could impact its growth. They fail to include vesting terms (i.e., It is more common that startups include vesting terms for their non-founding hires.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc. They aren’t doing this viciously?—?they Entrepreneur : “Sure.

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Is Dead Equity Crippling Your Company?

Altgate

Instead, the dead equity languishes on the cap table, weighing down the startup and making it harder to attract and motivate the people who could impact its growth. They fail to include vesting terms (i.e., It is more common that startups include vesting terms for their non-founding hires.

Equity 28