David Teten
JANUARY 19, 2021
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.
Hunter Walker
SEPTEMBER 5, 2021
Startup CEOs Should Test Strength of Cap Table Every ~6 Months To Know Where They Stand. I really liked Jason Lemkin’s “ Do You Have a Weak Investor Syndicate ” blog post from earlier in the summer. Lastly, Jason has a single very practical suggestion on what to do if your cap table is tapped out.
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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.
This is going to be BIG.
DECEMBER 3, 2020
Depending on the minimum investment size, if you think about what hiring an actual analyst, or someone more senior, might cost you to look at deals you’re serious about, an investment in a fund could may for itself in access. Less than that and you need something else to bring to the table. b) Reputation for adding value.
Haystack
AUGUST 18, 2019
You lose influence as larger investors come into the cap table and start throwing their weight around. On this dimension, most seed funds can’t even compete on network, brand, or the cost of capital. Back in 2017, Fred Wilson noted the strategic importance of the seed stage , writing: Seed is really hard.
Hunter Walker
JULY 19, 2017
As Tomio Geron wrote in this week’s WSJ , At Homebrew , we don’t currently use Scouts, but generally welcome any investors into syndicates who can provide value to the founders. And as a founder, this is the risk/cost/benefit (depending on how you see it). Are you a Scout? But you want to do this on your terms and timeline.
David Teten
SEPTEMBER 23, 2017
Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. EShares is an increasingly popular tool in our portfolio for tracking private company cap tables. The only problem that faces startup investors now is how to mine this new data layer efficiently to increase returns.”.
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