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Being A Pro

View from Seed

Consider the interests of everyone on the cap table. Follow-through on promises and commitments. Treat founder’s time as costly, not costless. 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.

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The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. It will save everyone a lot of cost and time. You’re going to suck compared to an alternative player and you’ll undoubtedly cost your team wins.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

One of my favorite lines in buried in the middle: “I’ve heard enough companies say “we simply can’t cut costs or it will hurt the long-term potential of the business” to get a wry smile. Pragmatic cost cuts are always possible and often productive.” It’s simply not true.

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

Some companies may be able to become “cockroaches” or “ramen profitable” but cutting costs and staff substantially and getting to a burn rate that last 2 years. How Complicated is Your Cap Table? Cap Table issues are seldom understood by entrepreneurs. You are in a classic cap table pinch.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

That said, nothing is cost-free. More complex cost of capital calculation. If a company grows profitably or raises another VC round, the return cap gets repaid ahead of schedule. Inversely, if the company has slower than predicted growth, the effective cost of capital is automatically lowered. Transaction costs.

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Greenhouse CEO Daniel Chait on how AI is changing human resources and weaning his company off venture funding via private equity

Hunter Walker

It’s not “traditional PE” — meaning, a leveraged buyout fund where they try to cut costs and squeeze margins — it’s more like a later stage Venture Capital firm, with extra support capabilities to help companies as they scale.

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The Changing Structure of the VC Industry

Both Sides of the Table

Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. It’s hard to work out the cap table with your peers when one of them has no real intent in fixing the problem. We’re all socially connected (so great businesses spread faster).