keen.io

FEBRUARY 5, 2013

For example: Don’t accept equity compensation (stock shares) without knowing the percentage of the company you’ll own. To begin answering this question, I started on a quest to understand startup financing. And they gave me a choice whether I’d want more stock or a higher salary.” First, I read Venture Deals by Brad Feld.

Salary 50

Salary Equity Startup San Francisco 50

View from Seed

OCTOBER 15, 2014

Include both positives and negatives for a more productive board conversation, which is especially critical in the seed stage since nearly everything is in “figure it out” mode. Finance is mission critical, for instance – it just appears on a recurring basis. However, these are important updates for your board to know.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Austin Startup

AUGUST 20, 2017

Your Cap Table is something that deserves constant care and attention. Messy cap tables can come back to haunt you when you do a financing or sell the company. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. The rest will take care of itself.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

genylabs.typepad.com

SEPTEMBER 24, 2011

I often take stock in lieu of cash. I have a file drawer full of worthless stock certificates and I continue to add to it. Not all start-up stock is created equally. what kind of stock you are getting. where your stock sits in the liquidity preference stack. what kind of stock you are getting. Clean Energy.

Equity 40

Equity Technical Review San Jose Stock 40

Feld Thoughts

JUNE 2, 2015

Or, if you just want the paragraph, it’s: “If this note converts at a price higher than the cap that you have been given you agree that in the conversion of the note into equity you agree to allow your stock to be converted such that you will receive no more than a 1x non-participating liquidation preference plus any agreed interest.”.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

Hunter Walker

SEPTEMBER 29, 2022

As an early stage fund, often buying 10–15% of a company during its seed financing, this meant we were often being asked if we wanted to sell portions of our stakes to other approved investors (let alone the random pings from market-makers unaffiliated with the company). You don’t try to reprice the company on your own.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. 645 Ventures released a cap table simulator to help level the playing field.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

venturehacks.com

MARCH 21, 2008

You get money, save stock, and amplify the advisor’s social proof in the process. If an advisor can uncork a million dollars of your company’s latent value with 15 minutes of conversation or a single introduction, you should pay him appropriately. 0.25% of a company’s post-Series A stock. Compensation 7.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

venturehacks.com

OCTOBER 21, 2010

You explain that the company currently has 6M shares outstanding so the investors must be valuing the company’s stock at $1.33/share: Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Austin Startup

MAY 17, 2017

They’ll often ask for different variants of ‘information rights’ — which can include delivery of regular financials, and notification of major transactions (like financings). Their interests as an investor are more aligned with the new VCs investing in the Series A than they are with the Common Stock.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48

Startup Lessons Learned

MAY 4, 2021

Just before the IPO, I had a far-reaching conversation with co-founder and CEO Brian Armstrong as he approached this major milestone for the company he co-founded back in 2012. Here's my conversation with Brian Armstrong. We're having this conversation still in the midst of a seemingly never ending pandemic and lockdown.

IPO 113

IPO Cofounder Technical Review Government 113