Hunter Walker

AUGUST 8, 2023

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Soft Acquisition Market. Whatever gets reported is just the tip of the iceberg.

Portfolio 99

Portfolio Cap Table LP Valuation 99

Hunter Walker

SEPTEMBER 5, 2021

Startup CEOs Should Test Strength of Cap Table Every ~6 Months To Know Where They Stand. As a venture fund I might have a strategy which says “for every dollar I invest into companies, I will hold one dollar in reserve for additional financings.” Instead my recommendation is to ask every ~6 months or so in-between financings.

Cap Table 95

Cap Table Seed Stage Syndicate Syndication 95

Both Sides of the Table

OCTOBER 7, 2014

5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. Entrepreneurs started demanding that VCs call their first-round financings “seed” rounds even if they were $3 million. It is less about actual money and more about structure of your Cap Table.

Cap Table 399

Cap Table Silicon Valley Term Sheet Finance 399

Gust

OCTOBER 8, 2014

Cautionary note: No competent VC is actually fooled when you show up after raising $6M in seed financing and say you’re now raising an A! 5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. It is less about actual money and more about structure of your Cap Table.

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

keen.io

FEBRUARY 5, 2013

And if the CEO says, “Salaries will be adjusted to market value soon,” that’s probably a best-case scenario. To begin answering this question, I started on a quest to understand startup financing. Assumption: The pre-dilution amount prior to Series A should be approximately double the amount in this post-Series-A chart.

Salary 50

Salary Equity Startup San Francisco 50

ithacaVC

FEBRUARY 1, 2018

It is highly typical for a startup to have small investors on its cap table. The treatment of the friends, family and angels (FFA) as the startup matures and raises larger rounds of financing over time is interesting. In this situation, the FFAs are diluted from an ownership percentage, but enhanced economically.

Preemptive Right 45

Preemptive Right Cap Table Valuation Dilution 45

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. With the public markets down, these groups began writing down Unicorn valuations. Once more, the fantasy began to come apart.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 22, 2011

I understand the appeal of having many VC firms on your cap table. You may feel as I did in 1999 that the more smart people around the table the more intros you’ll have, the more sage advice you’ll receive and the more impressive you’ll seem to outsiders. The Perils of Many. But it happens.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Less or no dilution. A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability. But should they? Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

venturehacks.com

MARCH 21, 2008

If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like. All our products Pitching Hacks , Cap Table , and Co-founder Interview. Learn more. Buy it here.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

venturehacks.com

OCTOBER 21, 2010

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.&# Update : Check out our $9 cap table which calculates the effect of the option pool shuffle on your effective valuation. share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

This is going to be BIG.

JUNE 2, 2010

That being said, is it me, or do more and more entrepreneurs seem to out there in the market essentially skipping the 500k-ish angel round? You try to do too much, overhire, overmarket, and you start to believe that your market is a landgrab. “We That doesn’t seem like a good reason to change your financing and product strategy over.

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

www.payne.org

SEPTEMBER 22, 2011

3 Dilution. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Those new shares are created out of thin air by the company, and will dilute all of the current stockholders.

Equity 56

Equity Employee Vesting Preferred Stock 56