Feld Thoughts

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

This week they set out to create their cap table and hire a CTO. Equity is split 55% and 45%, but where is that officially recorded? They come up with two options: Hire Praveena as an employee and offer her stock options. The benefit of hiring Praveena is they think they could keep more equity and control of the company.

Cap Table 133
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Create Structure out of the Gate and You’ll Thank Yourself Later

Feld Thoughts

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. So why would you treat your debt investors (somewhat) like equity investors?

Burn Rate 152
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Help Support Black-Owned Businesses

Feld Thoughts

Like many things Amy and I have been supporting around racial equity; this was an easy yes. During Black Friday season, ask your company or organization: Are you considering Black-owned Professional Services Companies when hiring vendors? ?I Help grow the US economy by $5 Trillion. Learn More: [link]. ?#BlackOwnedBusiness

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The Generic VC / PE Reference Questions For An Executive Hire

Feld Thoughts

Would you hire Person X again? I don’t know which VC or Private Equity firm first came up with this list of questions, but like many elements of a term sheet, they seem to have been passed down from generation to generation. What are Person X’s strengths? What are Person X’s weaknesses or areas for development?

Hiring 70
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How Federal Government Can Help Entrepreneurship

Feld Thoughts

Make it simple – eliminate capital gains if an individual (who is an accredited investor) invests equity (i.e. The solution so far has seemed to be “hire more people to process more paper faster.&# risk of 100% loss of investment) in a private company with less than 100 employees.

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Expanding My Perspective

Feld Thoughts

A year ago, I decided I needed to permanently change my diet and hired Katie Elliott as my nutritionist. Each chapter ended with her reflections about race, diversity, equity, and equality that related directly to the story she had just told. She’s also an outstanding athlete, so I’ve gotten bonus coaching from her.

Atlanta 133
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Mentors 18/18: Have Empathy. Remember That Startups Are Hard

Feld Thoughts

During one of the Techstars Boston cohorts where I’ve been Mentor-in-Residence, I worked with a 20-something CEO founder (code named Mary) who, shortly after raising a seed round of several million dollars, hired a high-powered exec, granting a significant equity option.

Boston 118