Both Sides of the Table

MAY 9, 2018

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. What do I do now? Wednesday I have 4 companies coming in to talk about their companies. Some were interesting, some weren’t.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 6) Due diligence. I personally use Salesforce.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

AUGUST 3, 2010

I’m doing due diligence on a company of another entrepreneur in LA whose company was apparently doing very well. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up. &# My friend’s company was pre-revenue. Me: “Zero dilution.

Merger 276

Merger Technical Review Early Stage Dilution 276

Business Plan Blog

DECEMBER 26, 2013

The entrepreneur will need to be ready and able to respond to due diligence information requests. Conditions, such as: Satisfactory completion of due diligence and references. They should be highly regarded by the other group members and able to secure their confidence. Amount to be invested. Pre-money valuation.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

www.paulgraham.com

APRIL 28, 2010

Theyleave 20% as an options pool for later employees (but they setthings up so that they can issue this stock to themselves if theyget bought early and most is still unissued), and the three founderseach get 25%. So after this the option pool is down to 13.7%). [ Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

ithacaVC

DECEMBER 13, 2013

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. And don’t forget that the options granted would come out of the available option pool.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Both Sides of the Table

FEBRUARY 22, 2011

When you consider that they’ll also want a 15-20% option pool in the company you’re talking about founders owning as little as 40% after just one round. Best if you get much of this from due diligence of calling other portfolio companies and then use this information to confirm with the VC.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314