Feld Thoughts

SEPTEMBER 2, 2011

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. Jane and Dick want to bring in their friend Praveena as CTO, but they don’t know how to structure the compensation. The founders each have common shares that will vest over four years.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

SoCal CTO

SEPTEMBER 27, 2011

Ben Yoskovitz gets to a similar point In Changing Equity Structures for Early Startup Employees : The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing, running day-to-day activities, etc.)

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Both Sides of the Table

MAY 9, 2018

I also had to negotiate a follow-on round at a portfolio company because new investors were trying to force a bit option-pool top-up that would dilute the founders and existing shareholders and existing investors were fighting over prorata rights. Last time we met I didn’t have my CTO with me. Some were interesting, some weren’t.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

rapidrollout.wordpress.com

JANUARY 15, 2011

Web Startup Lessons Advice from a CTO and Entrepreneur Home About Startup Advice: When to Use a Consulting CTO There are not many to be found. He or she might call himself a “consulting CTO,&# “freelance CTO,&# “on-demand CTO,&# “CTO on call,&# “CTO for hire,&# or just a “technology strategy advisor.&#

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

The Next Web

NOVEMBER 20, 2013

So, a fair split, would be closer to 60/40 in favor of the funding founder, when diluted for the cash. The calculation comes as follows: original 50/50 diluted down 20 percent to 40/40 for the financing, and then the one funding founder gets that 20 percent. To me, that is no different than financing the business.

Cofounder 136

Cofounder Equity Founder Seed Stage 136

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

www.avc.com

SEPTEMBER 22, 2011

This "best value" can be the valuation on the last round of financing. Whatever approach you use, it should be the value of your company that you would sell or finance your business at right now. The other important data point is the number of fully diluted shares. Or it can be a public market comp analysis.

Equity 64

Equity Employee CTO Hire Fractional CTO 64