ithacaVC

DECEMBER 13, 2013

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. VCs in particular typically insist on a slug of available options counting in the pre-money share total as they do not want to be diluted later by the issuance of those options. Often times a plug is used around 10%.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

VC Adventure

OCTOBER 8, 2012

Given the prevalence of convertible debt as a seed financing instrument, an increasing number of companies we look at have some kind of convert in place. 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.

Cap Table 93

Cap Table Dilution Equity Deal Structure 93

View from Seed

SEPTEMBER 23, 2019

To provide relevant perspective, listing past convertible note(s) and/or equity financing(s) including total round size and valuation (caps) is helpful. Previous venture firms’ specific involvement on the cap table should be noted here, though. First, it’s helpful to enumerate the startup’s funding history to date.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. 2-5x return cap + path to uncapped equity returns. Yes, via conversion rights at a valuation cap. Profitability is prioritized : The revenue that is going to grow the company immediately is the same revenue that is going to get investors to their return cap. “A

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Hunter Walker

JANUARY 2, 2017

This keeps them aligned with their investors since a $250m exit with modest venture financing raised can be wonderful for all parties, but the same transaction can look awful if your last round was $60m on $300m pre! OR, the team and/or investors will be ready to take their money off the table. Highest Level: Buying Peace of Mind .

Technical Review 116

Technical Review Cap Table Acquisition Startup 116

Hunter Walker

AUGUST 8, 2023

Satya and I were having lunch (yummy Chinese food) with our LPAC and the conversation turned to generally “how much more did venture portfolios have to fall before they found their true current value?” ” That is, for the class of funds institutional LPs tend to back, on average, where was bottom? Soft Acquisition Market.

Portfolio 99

Portfolio Cap Table LP Valuation 99

VC Adventure

OCTOBER 8, 2012

Given the prevalence of convertible debt as a seed financing instrument, an increasing number of companies we look at have some kind of convert in place. 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.

Cap Table 48

Cap Table Dilution Equity Deal Structure 48