article thumbnail

The BSList - Busted Cap Table (No. 104)

This is going to be BIG.

It’s this part: “I’m getting inbound from investors…” Nearly all of the inbound VC interest happening out there is from non-partner investors (i.e. A check-writing partner reaches out to you. But back to the cap table. Here’s why VC’s don’t actually care about your prior cap table in most circumstances.

article thumbnail

Need money? Read this!

Berkonomics

My experience with early valuations by founders for friends… I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round and had to “clean up” the cap table more than a few times over the years.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Does your business need money? Read this!

Berkonomics

I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round, and had to “clean up” the cap table more than a few times over the years. It is most often a win-win for both you and the strategic partner. It’s an option, even though an expensive one.

article thumbnail

Raising money for your business: What are the options?

Berkonomics

I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round, and had to “clean up” the cap table more than a few times over the years. Taking this kind of money has a number of pitfalls you should be aware of.

article thumbnail

On the Road to Recap:

abovethecrowd.com

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Their own ego is also a factor – will a down round signal weakness?

IPO 40
article thumbnail

How to Fund a Startup

www.paulgraham.com

The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. Not all the people who work at VC firms are partners. If you get a call from a VCfirm, go to their web site and check whether the person you talkedto is a partner.