Remove Cap Table Remove Finance Remove Hiring Remove Stock
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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. Rather, it gets recorded in a document called the Capitalization Table (or β€œCap Table”), which shows the ownership stake each person or entity has in the business.

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Cap Table Clean Up

ithacaVC

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. Let’s assume that Founder X owns 800,000 shares of common stock and Founder Y owns 1,300,000 shares of common stock and that the option pool in total has 356,758 shares allocated (to make the total stated above).

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. ” Many companies have hired ahead of their growth rate because they had the cash to do so. It’s simply not true.

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What’s a Fair 409A Discount?

VC Adventure

As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well). Back in the olden days of venture capital, company boards had wide discretion in pricing company options.

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How to Pick the Right Attorney For Your Startup

Up and Running

We had personally invested $70,000 of our own money at this point, and we were hoping to raise at least another $250,000 to help us hire a team, launch our company, and begin to build our product. This should be clearly spelled out in your Capitalization Table , or β€œCap Table” as it’s commonly called.

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An Alternative to Board Decks Some Seed VCs Actually Prefer

View from Seed

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Team: Hires, fires, departures, responsibility changes, major promotions, and your org chart.

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Is Dead Equity Crippling Your Company?

Altgate

One who attracted much attention is David Choe, the graffiti artist hired to paint the company’s first headquarters. Thanks to that one decision, he owns nearly four million shares of stock, worth in excess of $100 million. It is more common that startups include vesting terms for their non-founding hires.

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