article thumbnail

How to Pick the Right Attorney For Your Startup

Up and Running

We had personally invested $70,000 of our own money at this point, and we were hoping to raise at least another $250,000 to help us hire a team, launch our company, and begin to build our product. This should be clearly spelled out in your Capitalization Table , or “Cap Table” as it’s commonly called.

article thumbnail

Valuing Startup Employee Options

David Teten

Enter Raul: This capital table startup options valuation model was created with the purpose of valuing options for an illiquid, early-stage start-up. Projections were based on dozens of operational assumptions related to pricing, production, marketing spend, etc. In banking, a lot of my time was spent on modeling cash flows.

Employee 155
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

Early employees are paid a salary from day 1, don't have to have the reputation/connections to raise money, take on much less risk, and often have much more information about the company (team so far, financials, product traction/progress) when they decide to join than the founders do when they found the company. This answer.

Equity 40
article thumbnail

On the Road to Recap:

abovethecrowd.com

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. The explicit details of the capital structure of a company are typically obfuscated from the average employee.

IPO 40