VC Adventure

OCTOBER 8, 2012

This is typically reflected on cap tables in a completely separate tab to the spreadsheet that shows the debt total by investor and then some kind of interest calculation. The problem, of course, is that their convert is already a part of their capitalization – even though it’s not reflected on the cap table.

Cap Table 93

Cap Table Dilution Equity Deal Structure 93

Both Sides of the Table

AUGUST 28, 2012

I have seen some entrepreneurs go into first meetings willing to share almost anything about their company. I’ve seen this back fire on entrepreneurs who say things like, “Well, we’re not talking financials with investors yet.”. They want to see your cap table, your legal documents, your major contracts, your full financial model, etc.

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

Startup Professionals Musings

JANUARY 18, 2016

Most entrepreneurs work long and hard to get a handshake agreement from an investor, and then tend to relax and wait for the check to clear. For entrepreneurs, due diligence may seem like a mysterious process, with secret formulas and tricky questions, to give investors leverage. Business structure and financial risks.

Technical Review 120

Technical Review Due Diligence Cap Table Intellectual Property 120

David Teten

JANUARY 19, 2021

See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? Zack Mueller, Attorney, Ireland Stapleton Pryor & Pascoe, PC , points that almost “no one, from LPs to entrepreneurs to attorneys, has much experience with these instruments. Less established regulatory framework. . Emily Campbell, Esq.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Hunter Walker

OCTOBER 31, 2021

and my answer is that generally while a particular zip code or two might feel ‘overfunded’ at a moment in time, that early stage entrepreneurism is still UNDERFUNDED globally by at least an order of magnitude. If you can be more valuable than that, I’d love to bring you on to the cap table of the next seed round we lead.

Cap Table 122

Cap Table Cofounder Early Stage Portfolio 122

Hunter Walker

DECEMBER 11, 2023

DC: As a lifelong entrepreneur, Greenhouse is now basically the largest company I’ve been a part of (and has been for several years) so I’ve had to learn a ton over the years about how to scale myself. Steering the company in that way has been a growth area for me as an entrepreneur and something as a CEO that I’ve been learning to do well.

Private Equity 78

Private Equity Equity DC Leveraged Buyout 78

VC Adventure

OCTOBER 8, 2012

This is typically reflected on cap tables in a completely separate tab to the spreadsheet that shows the debt total by investor and then some kind of interest calculation. The problem, of course, is that their convert is already a part of their capitalization – even though it’s not reflected on the cap table.

Cap Table 48

Cap Table Dilution Equity Deal Structure 48

Both Sides of the Table

JULY 25, 2011

tl;dr version: If you’re an entrepreneur or VC or will be working in this industry - buy this. To this day I’m still surprised how few CEOs really understand the differences between 2x liquidation preference and a liquidation preference with a 2x cap. Or what “flat spots&# on a cap table are.

Liquidation Preference 304

Liquidation Preference Term Sheet Cap Table Participating Preferred 304

ReadWriteStart

SEPTEMBER 2, 2011

Therefore, going down the fundraising path is something many technology entrepreneurs will need to do and a critical step in the development of their business. Remember, once you screw up your Cap Table it's really hard to go back. He explains five problems with this and I couldn't agree more.

Cap Table 125

Cap Table Term Sheet Liquidation Preference Technical Review 125

Berkonomics

MARCH 8, 2012

Investors love to see entrepreneurs who have used their own money to ignite their businesses. But often, entrepreneurs turn to others for initial capital. To compound the problem, often stock is issued by the entrepreneur without filing any report of such issuance with the state of issue.

Cap Table 74

Cap Table Private Placement SEC Accredited Investor 74

OnlyOnce

JULY 30, 2020

If you’re a founder entrepreneur who has led your company for several years, the odds are you have a significant amount of emotional investment in your company, too. For many entrepreneurs, the company is a deeply embedded part of their identities as a human – right or wrong, for better or for worse.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

Both Sides of the Table

MAY 19, 2018

Your historical trading information including financials and a “customer file” which shows the history of your transactions so that investors can run “cohort” analyses Customer reference, personal references, key team members, compensation, cap table, stock option plan, etc. Entrepreneur : “Sure. Some people find this elitist?—?I

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

OnlyOnce

NOVEMBER 2, 2017

I redacted our cap table and pictures of our VCs, but otherwise, feel free to use it with your own management team, or even your whole company.

Venture Capital 116

Venture Capital Cap Table Entrepreneur Startup 116

Both Sides of the Table

JULY 7, 2015

One of my favorite entrepreneur-Twitterer weighed in, “You want to keep tapping into their collective intelligence so you keep saying ‘Thank you for the feedback’ and they keep sending it,” Ms. I’ll give Sam Altman the last quote from the article , YCombinator also warns young entrepreneurs about taking on too much, too fast. “We

Cap Table 150

Cap Table Cofounder Silicon Valley Startup 150

Both Sides of the Table

JULY 23, 2014

It’s hard to work out the cap table with your peers when one of them has no real intent in fixing the problem. Because this is all VCs do and if we intend to work with all of our fellow VCs and entrepreneurs when the rain ends and the sun shines again our reputations matter greatly.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Up and Running

JULY 2, 2014

Now, if you’re a savvy investor or entrepreneur, I’m sure your jaw just dropped as you read that. Now, if you’re a savvy investor or entrepreneur, I’m sure your jaw just dropped as you read that. This should be clearly spelled out in your Capitalization Table , or “Cap Table” as it’s commonly called.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Both Sides of the Table

JULY 22, 2010

And for some strange reason entrepreneurs didn’t share this information. I’ve started from day one trying to build total transparency into my process with entrepreneurs. This starts with understanding how VCs and entrepreneurs often see valuation differently. Back then VentureHacks didn’t exist.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

SEPTEMBER 16, 2010

This is the fourth article in a series on what it takes to be a great angel investor (and why this should matter to entrepreneurs). And if you’re not busy being crushed (diluted) you might not notice that the people above you in the cap table (e.g. Part 1 – Access to Great Deal Flow – is here. But it is.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

The Next Web

OCTOBER 21, 2013

As the European startup ecosystem matures, you would expect young entrepreneurs to enjoy ever-increasing access to useful advice from mentors, business leaders, experienced entrepreneurs, legal advisors and investors. In most cases entrepreneurs – especially first-time entrepreneurs – are naïve about fundraising.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

This is going to be BIG.

OCTOBER 22, 2014

What I find a bit frustrating is how easily some people get onto panels and are put up in front of an impressionable crowd of new entrepreneurs as "experts". You''ll get an entrepreneur who has raised one and only one round of financing in his or her entire life--all from relatively unsophisticated individuals, giving fundraising advice.

Venture Capital 140

Venture Capital Cap Table Startup Early Stage 140

Hunter Walker

FEBRUARY 20, 2024

The Five Lessons That Have Guided My Career [Avni Patel Thompson/Milo] – Derived from a talk she gave at a High School Career Day, CEO/entrepreneur Patel Thompson thinks that guidebooks are better than roadmaps when it comes to career advice. They start with a mess and end with a verdict. That sucks for everyone.

Founder Vesting 59

Founder Vesting Vesting Cap Table Founder 59

Feld Thoughts

JULY 15, 2014

In addition to bootstrapping his new company forever (since he’s a multi-time successful entrepreneur), Steve could easily raise an angel round any time he wanted to. 2) Keeping the number of entries on our cap table relatively small. So, we were psyched he was willing to do an FG Angels Syndicate with us.

Syndicate 148

Syndicate Syndication Cap Table Due Diligence 148

OnlyOnce

OCTOBER 28, 2021

And for the most part, the same is true about our cap table. No institutional debt like a messy cap table, legacy people issues, leases for offices we don’t want or need any more. First, I am working with a hand-picked group of people. Third, after a 20-year run at Return Path, it’s great to start with a clean slate.

Cap Table 62

Cap Table Early Stage Cofounder Leadership 62

VC Cafe

JUNE 26, 2013

Even when you hear stories about entrepreneurs who walk out of a VC with a personal check from the managing director, it is usually after 6 months of pitching and hearing ''no''. 101 funding Soomla Yaniv Nizan cap table Eyeview VC' Funding is never easy. Visit my website for full links, other content, and more!

Cap Table 131

Cap Table Management Entrepreneur 131

Pascal's View

JULY 9, 2017

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. Many entrepreneurs lose track of what they have been cooking up in the cap table.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

VC Adventure

MAY 10, 2020

While US entrepreneurs are the ones dealing with the clumsy handling of these loans in the short term, our overall economy will be dealing with the fallout for years. Exactly what this means isn’t clear.

SBA 79

SBA Affiliate Los Angeles Cap Table 79

Both Sides of the Table

JANUARY 21, 2010

I recently read a post over on VentureHacks titled, “ Top Ten Reasons Entrepreneurs Hate Lawyers &# written by Scott Walker (who blogs on legal issues for entrepreneurs ). Because many great entrepreneurs work with lawyers in registering their companies they have their ear to the pavement on the earliest of company formations.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

AUGUST 2, 2014

The acquiring company wants 100% of the proceeds to go to founders whatever the cap table says because buyers care way more about incentivizing and locking in founders than they do about VC returns or legal provisions to protect VCs. They are great entrepreneurs and let’s just make sure we work with them in the future.”

Cap Table 346

Cap Table Cofounder Stock Acquisition 346

Hunter Walker

MARCH 14, 2019

All the disruption can be pretty jarring to an entrepreneur, especially in situations where the exiting partner represents the top line on your cap table. TOO EARLY TO TELL- SOME GOOD STUFF, SOME CHALLENGES BUT A LOT TO DO: Here’s where I think founders and cap tables can should be more proactive.

Cap Table 95

Cap Table Dilution Silicon Valley Portfolio 95

Gust

OCTOBER 8, 2014

This is something I think entrepreneurs don’t totally understand and it’s worthwhile they do. 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. Why the latter?

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

VC Adventure

JULY 27, 2011

What more and more entrepreneurs are realizing is that they should be doing the same kind of due diligence on their potential funders. We’ve been long time fans of this kind of reverse due diligence and always encourage entrepreneurs to “check us out&# before making a decision to invest with us.

Technical Review 120

Technical Review Due Diligence Cap Table Portfolio 120

Both Sides of the Table

OCTOBER 7, 2014

This is something I think entrepreneurs don’t totally understand and it’s worthwhile they do. 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

Berkonomics

AUGUST 3, 2023

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Taking this kind of money has several pitfalls you should be aware of.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Gust

JANUARY 30, 2014

Viable business structure and cap table. But most important of all , it must have an entrepreneur on whom I’m willing to bet. And the attributes I look for in that entrepreneur are: Integrity. Invested Interests David Rose entrepreneur funding invest startup' Reasonable valuation. Startup experience.

Cap Table 119

Cap Table API Valuation Startup 119

Feld Thoughts

APRIL 16, 2019

There are some blog posts that every entrepreneur should read. Hunter has a great lead in: “ Here’s where I think founders and cap tables should be more proactive. Hunter Walk at Homebrew recently wrote one of them. It’s titled Oh S**t, Your VC Just Quit Her Fund! What a Good CEO Should Do Next.

Cap Table 82

Cap Table Founder Conversion Email 82

www.readwriteweb.com

DECEMBER 29, 2011

Therefore, going down the fundraising path is something many technology entrepreneurs will need to do and is a critical step in the development of their business. Remember, once you screw up your cap table it's really hard to go back. He explains five problems with this and I couldn't agree more.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

NZ Entrepreneur

JUNE 21, 2022

Want to tap in to the best startup advice from entrepreneurs who are out there doing it? From how to develop your idea, to customer validation, investment, communication & marketing, governance, cap tables, due diligence, sales, are just some of the areas that as a founder you will need to navigate. TheTestMart.

Founder 88

Founder Cap Table Cofounder New Zealand 88