Both Sides of the Table

SEPTEMBER 16, 2010

But consider periods of time where the average time a company exists before acquisition or IPO is 7-10 years. avoid being diluted). And if you’re not busy being crushed (diluted) you might not notice that the people above you in the cap table (e.g. This is actually the norm. But it is.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). That said, Jonathan Bragdon, General Partner, Capacity Capital , points out that Flexible VC terms “twin” well with equity: providing less dilution while still providing investor assistance. . Volatile, uncapped.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ithacaVC

FEBRUARY 1, 2018

It is highly typical for a startup to have small investors on its cap table. In this situation, the FFAs are diluted from an ownership percentage, but enhanced economically. Founders often raise money from friends and family and other angels. That is all well and good… and 100% normal.

Preemptive Right 45

Preemptive Right Cap Table Valuation Dilution 45

The Next Web

OCTOBER 7, 2013

Cap tables sound intimidating. Every time a startup raises capital, all common shareholders are diluted. All of the estimates displayed above are figures prior to any dilution. As stated earlier, investors will dilute ownership upon nearly every round of financing. Is there an IPO story here? N: exit size.

Engineer 129

Engineer Dilution Option Pool Vesting 129

www.payne.org

SEPTEMBER 22, 2011

3 Dilution. In addition, IPOs are a special scenario, where the preference usually goes away and all stock classes are in equal footing). Those new shares are created out of thin air by the company, and will dilute all of the current stockholders. In a startup, dilution happens, and you just need to factor it in.

Equity 56

Equity Employee Vesting Preferred Stock 56

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In Q1 of 2016 there were zero VC-backed technology IPOs.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

APRIL 28, 2010

In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem. Whatkind of anti-dilution protection do they want? They just want to invest in this startup.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76