article thumbnail

How to Raise Startup Funding from Unlikely Angel Investors

Up and Running

According to the Angel Capital Association: Angels (private money) invest in 55,000 startups each year versus 1,500 companies by VC (venture capital) funding. Capitalization Table and Shareholder Roster. Not coincidentally, most venture funded companies will also fail. I’m not your average angel.

article thumbnail

How to Pick the Right Attorney For Your Startup

Up and Running

This should be clearly spelled out in your Capitalization Table , or “Cap Table” as it’s commonly called. A Cap Table shows who owns the company, what the ownership shares are, and what the owners have invested in exchange for that share. Can they create and advise on a Capitalization Table?

Insiders

Sign Up for our Newsletter

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

article thumbnail

Valuing Startup Employee Options

David Teten

Such a model is particularly helpful for those founders looking for a co-founder or key employee. Enter Raul: This capital table startup options valuation model was created with the purpose of valuing options for an illiquid, early-stage start-up.

Employee 155
article thumbnail

Equity for Consultants – Keep it Simple!

www.mattbartus.com

People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. I can tell you that, among other problems, any uncertainty in the capitalization table when the company is acquired will be resolved squarely and unequivocally in favor of the buyer.

Equity 40
article thumbnail

On the Road to Recap:

abovethecrowd.com

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. About this same point in time, the journalists that focus specifically on the venture capital industry noted something quite profound.

IPO 40
article thumbnail

Cap Tables Explained: Guide to Understanding Cap Tables

Board Effect

Capitalization tables—”cap tables” for those who don’t have time for extra syllables—map the balance of power in a company. If org charts are about people power , cap tables are about money power. In reality, however, cap tables are often far more complex. Why do cap tables matter? How are cap tables used?