This is going to be BIG.

AUGUST 21, 2023

Before we get into a debate about how much a founder should own, there’s a context implicit in the question that is easily overlooked. Before we get into a debate about how much a founder should own, there’s a context implicit in the question that is easily overlooked. That doesn’t make you a bad founder. Did you spot it?

Cap Table 78

Cap Table Term Sheet Database Option Pool 78

Feld Thoughts

FEBRUARY 9, 2016

“If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier” Again, go read the post now – I’ll wait. I have two simple rules for founders in my head from this experience. Then, if you end up doing a down round, it suddenly matters a lot.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Hunter Walker

AUGUST 8, 2023

Restructures, Down Rounds, and Pay to Plays. The reality is lots of companies – many of them quite promising – have already undergone, or will be facing, next financings which “clean up” old cap tables. Whatever gets reported is just the tip of the iceberg.

Portfolio 98

Portfolio Cap Table LP Valuation 98

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For those of you who fit that description, nice work. Taking this kind of money has several pitfalls you should be aware of.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

ithacaVC

FEBRUARY 1, 2018

It is highly typical for a startup to have small investors on its cap table. Founders often raise money from friends and family and other angels. The treatment of the friends, family and angels (FFA) as the startup matures and raises larger rounds of financing over time is interesting. Here is a quick guide.

Preemptive Right 45

Preemptive Right Cap Table Valuation Dilution 45

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. Taking this kind of money has a number of pitfalls you should be aware of.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Both Sides of the Table

FEBRUARY 8, 2016

Don’t assume that you can “just do a down round” if necessary. Down rounds are corrosive. Founders hate them because they’re dilutive. If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier. Start early.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150