Board Effect

MAY 13, 2019

Let’s not waste time listing everything startups could be doing to more effectively manage their cap tables. When it comes to cap table management in startup companies, it’s unrealistic to expect perfection. What does your cap table need to address at each stage of growth? Defining Cap Tables.

Cap Table 40

Cap Table Startup Dilution Management 40

Gust

JUNE 22, 2016

The post Gust Launches Comprehensive Equity Management Platform for Cap Table Management and 409A Valuations appeared first on The Gust Blog. The new platform provides early-stage companies with powerful. Read more >.

Cap Table 93

Cap Table Valuation Equity Management 93

David Teten

MAY 20, 2016

As one of the lead engineers at ff Venture Capital , I spend most of my day building custom software solutions that enhance our firm’s process–tools that range from portfolio investment management to co-investor and cap table tracking and more. We posted on our site a more in-depth overview of ff’s Tech Platform.

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

Berkonomics

MARCH 7, 2019

The risk of the “dirty cap table”. The PPM does nothing to mitigate that problem when the investor is not accredited. To compound the problem, often stock is issued by the entrepreneur without filing any report of such issuance with the state of issue.

Cap Table 61

Cap Table SEC Accredited Investor Private Placement 61

ithacaVC

DECEMBER 13, 2013

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. On a fully diluted pre-money basis, that would mean the option pool represents 14.5% (356,758/2,456,758) of the cap table. times more equity than Founder X. Well, that is really up to Founder X and Founder Y.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Feld Thoughts

FEBRUARY 9, 2016

“If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier” Again, go read the post now – I’ll wait. Deal with reality as a founder as well as an investor group and avoid this complexity – just clean up your cap table instead.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Version One Ventures

MAY 22, 2018

How do you decide who you should have in your cap table? The post The “reverse” pitch: Who should you have on your cap table? If you find yourself in the fortunate position of being oversubscribed, you’ll likely look to build the best investor base and find the right partners for your journey.

Cap Table 60

Cap Table Cofounder Founder Syndicate 60

VC Adventure

OCTOBER 8, 2012

This is typically reflected on cap tables in a completely separate tab to the spreadsheet that shows the debt total by investor and then some kind of interest calculation. The problem, of course, is that their convert is already a part of their capitalization – even though it’s not reflected on the cap table.

Cap Table 93

Cap Table Dilution Equity Entrepreneur 93

View from Seed

JANUARY 15, 2020

Consider the interests of everyone on the cap table. Don’t ask “who else are you talking to” or “who else is in” unless founders have already referenced other investors. Don’t ghost. Help to create focus vs. create distractions. Are engaged when things are challenging. Play a multi-turn game. Focus on culture.

Cap Table 166

Cap Table Founder Florida Portfolio 166

Berkonomics

FEBRUARY 27, 2020

How it happens. When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Investors love to see entrepreneurs who have used their own money to ignite their businesses. But often, entrepreneurs turn to others for initial capital.

Cap Table 62

Cap Table Accredited Investor Private Placement SEC 62

VC Cafe

JANUARY 30, 2023

SAFE note), shareholder agreements, company formation and governance documents (e.g. articles of incorporation, bylaws, shareholder agreements), employment contracts, patents and trademarks, contracts with providers, SEC filings, licenses Business documents – client contracts, pipeline (can be redacted: i.e

Technical Review 103

Technical Review Startup Due Diligence Cap Table 103

Both Sides of the Table

FEBRUARY 15, 2016

How Complicated is Your Cap Table? Cap Table issues are seldom understood by entrepreneurs. If you raised a $2 million seed round at a $6 million pre then a $5 million A-round at a $20 million pre then a $20 million B-round at a $80 million pre and if your company has stalled you may have a cap table problem.

Burn Rate 150

Burn Rate Cap Table Startup Valuation 150

NZ Entrepreneur

DECEMBER 18, 2022

Commercialisation offices take a flexible approach to cap tables structures “We have a mandate to create impact from university research through commercialisation, so we are laser focused on setting new ventures up for success. Naturally, seeking investment once a company is ready to spin-out is a key part of that,” says Pierre.

Cap Table 52

Cap Table Marketing Technical Cofounder Entrepreneur 52

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. When I was General Counsel at a tech company during the 1999 bubble times, I kept the company’s Cap Table.

Cap Table 49

Cap Table Finance Option Pool Dilution 49

VC Adventure

OCTOBER 8, 2012

This is typically reflected on cap tables in a completely separate tab to the spreadsheet that shows the debt total by investor and then some kind of interest calculation. The problem, of course, is that their convert is already a part of their capitalization – even though it’s not reflected on the cap table.

Cap Table 48

Cap Table Dilution Equity Entrepreneur 48

Hunter Walker

OCTOBER 31, 2021

Be more helpful than the folks on cap tables today who overpromise and underdeliver — every cap table I’m on has some percentage of allocation that provided zero value after the investment. If you can be more valuable than that, I’d love to bring you on to the cap table of the next seed round we lead.

Cap Table 122

Cap Table Cofounder Early Stage Portfolio 122

Eric Friedman

NOVEMBER 18, 2022

I have been on both sides of the cap table of advisors. Having them on your cap table, or even in your slide deck as an advisor would bring you credibility.] With this in mind I am updating my thinking and math from the previous post, as well as adding some new questions.

Early Stage 103

Early Stage Equity Vesting Founder 103

Hearpreneur

AUGUST 20, 2023

And, over-fundraising can trigger a domino effect of complications, from cap-table issues to inflated valuations, which can ruin future fundraising. Specifically when fundraising, it isn't just about gathering a war chest – it's about finding the right relationships with the right investors who offer more than just capital.

Entrepreneur 74

Entrepreneur Cap Table Cofounder Dividend 74

Both Sides of the Table

AUGUST 28, 2012

They want to see your cap table, your legal documents, your major contracts, your full financial model, etc. There is no reason to part with your cap table or legal docs until you’re convinced that they’re actually committed to doing work with you in due diligence. In my opinion that is totally old school.

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

Berkonomics

MARCH 8, 2012

When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Investors love to see entrepreneurs who have used their own money to ignite their businesses. But often, entrepreneurs turn to others for initial capital.

Cap Table 74

Cap Table Accredited Investor Private Placement SEC 74

Hunter Walker

AUGUST 8, 2023

The reality is lots of companies – many of them quite promising – have already undergone, or will be facing, next financings which “clean up” old cap tables. Whatever gets reported is just the tip of the iceberg. Sometimes these are led by outside investors and old ones will just take the impact and walk away.

Portfolio 99

Portfolio Cap Table LP Valuation 99

ithacaVC

DECEMBER 9, 2013

Also, during the process, we had to clean up the company’s cap table and make sure that we all agreed on who owned what on a pro forma pre-money basis. Without having a complete pre-money cap table, it is impossible to calculate a share price. And they were typically good answers.

Term Sheet 58

Term Sheet Technical Review Cap Table IP 58

Hunter Walker

SEPTEMBER 29, 2022

You don’t bring investors on to the cap table via a secondary transaction that are going to be problematic. Even if we believe a company has tremendous longterm upside, it’s not inappropriate to take some money off the table in order to manage that risk. You don’t try to reprice the company on your own.

Venture Capital 123

Venture Capital Cap Table LP Equity 123

David Teten

SEPTEMBER 6, 2018

We also use Carta , which specializes in cap table management and has just launched a fund administration service which we have transitioned to. See best practices in building financial models , a template financial model , and valuing startup employee options. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Venture Capital Management 60

David Teten

SEPTEMBER 6, 2018

We also use Carta , which specializes in cap table management and has just launched a fund administration service which we have transitioned to. See best practices in building financial models , a template financial model , and valuing startup employee options. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Venture Capital Management 60

Hunter Walker

JANUARY 2, 2017

The total value of these deals might look higher than when a tech company makes an acquihire but the premium tends to go to retention rather than the cap table (especially since (a) the acquirer might not be seen as an ‘attractive’ place to work and (b) there’s assumption of less equity upside post-acquisition).

Technical Review 116

Technical Review Startup Cap Table Acquisition 116

Hunter Walker

MARCH 15, 2018

While reading Brotopia, we were also helping theSkimm finish up their new financing , with Google Ventures and Spanx founder Sara Blakely joining the cap table. Over the past five years, I’ve witnessed theSkimm be underestimated by the venture capital industry, by pundits and press.

Technical Review 71

Technical Review Cap Table Venture Capital Founder 71

Both Sides of the Table

FEBRUARY 8, 2016

If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier. New investors often prefer to back newer companies that have never been through this drama. In my mind this simply means. Start early. Give yourself enough runway but controlling costs. Be realistic on valuation.

Startup 150

Startup Burn Rate Valuation Dilution 150

Hunter Walker

SEPTEMBER 5, 2021

Startup CEOs Should Test Strength of Cap Table Every ~6 Months To Know Where They Stand. Lastly, Jason has a single very practical suggestion on what to do if your cap table is tapped out. I really liked Jason Lemkin’s “ Do You Have a Weak Investor Syndicate ” blog post from earlier in the summer.

Cap Table 95

Cap Table Seed Stage Founder Finance 95

OnlyOnce

JULY 14, 2022

I wrote a little bit about the experience of being a multi-time founder in this post where I talked about the value of things like a hand-picked team, hand-picked cap table, experience that drives efficient execution, and starting with a clean slate. They have an Easier Time Recruiting team members and investors.

Cap Table 62

Cap Table Founder Startup Portfolio 62

ReadWriteStart

SEPTEMBER 2, 2011

As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Remember, once you screw up your Cap Table it's really hard to go back.

Term Sheet 123

Term Sheet Cap Table Liquidation Preference Technical Review 123

Startup Professionals Musings

JANUARY 18, 2016

Be prepared to present a detailed cap table, identifying by percentage all owners, investors and debtors. Again, you need to head off any surprises by making sure you have mentioned all key competitors and thoroughly prepped the investor team on your strategy and direction. Business structure and financial risks.

Technical Review 120

Technical Review Due Diligence Intellectual Property Cap Table 120

Hunter Walker

SEPTEMBER 15, 2023

When $20B outcomes occur everyone on the cap table eats well. It’s Changing Venture Portfolio Models Towards Concentration, Not Just Dry Powder/Gambling. Gotta own enough of your winners. Nothing is more true in venture but this math got a bit perverted during ZIRP. When it’s $2B, you better have gotten your ownership.

Valuation 90

Valuation Cap Table Seed Stage Salary 90

Hunter Walker

DECEMBER 24, 2018

I strongly believe the detailed story of the company’s success is the founders’ one to tell if they choose to do so, but at the risk of excessive inside baseball, I’ll share my perspectives from the cap table. So founders, please don’t let lack of existing relationships deter you from reaching out to us.

Cap Table 96

Cap Table Seed Stage Founder Acquisition 96

OnlyOnce

OCTOBER 28, 2021

And for the most part, the same is true about our cap table. No institutional debt like a messy cap table, legacy people issues, leases for offices we don’t want or need any more. First, I am working with a hand-picked group of people. Third, after a 20-year run at Return Path, it’s great to start with a clean slate.

Cap Table 62

Cap Table Startup Cofounder Early Stage 62

Hunter Walker

AUGUST 23, 2023

I can vouch for his genuine optimism Hunter Walk: You got to work with a number of different VCs on your cap table for Anchor. Our conversations are always enjoyable, spanning tech, parenting and culture, so I decided to ask him Five Questions here. Who was the best one and why was it Homebrew?

Founder 88

Founder Angel Investor Startup Silicon Valley 88

OnlyOnce

JULY 30, 2020

Sometimes you can have a major internal problem related to the cap table–a founder with a lot of stock needs liquidity or you need to push this person out of the company. Or maybe when you look two years out you realize that your company is at its highwater mark in valuation, so it becomes a timing issue.

Startup 48

Startup Cap Table Institutional Investors Early Stage 48