Board Effect

MAY 13, 2019

Let’s not waste time listing everything startups could be doing to more effectively manage their cap tables. When it comes to cap table management in startup companies, it’s unrealistic to expect perfection. What does your cap table need to address at each stage of growth? Defining Cap Tables.

Cap Table 40

Cap Table Management Liquidity Event Dilution 40

VC Cafe

JANUARY 30, 2023

” – Andrew Carnegie As a founder, one of the key tasks in raising capital is to effectively communicate the value of your company to investors. In my experience as a seed venture investor, founders that had a full and tidy data room not only came across as more professional, but actually accelerated the process of DD and legal.

Technical Review 103

Technical Review Due Diligence Cap Table Startup 103

This is going to be BIG.

JANUARY 18, 2024

Some of these folks are founders and CEOs, but not at high-growth tech startups. Helpful investors should use their sage advice and support of the founder to make them into better, data-driven decision makers to impact a company, instead of relying on their contractually held voting rights. Perhaps they inherited it.

.Net 88

.Net Cap Table Startup Technical Review 88

Eric Friedman

NOVEMBER 18, 2022

I have had a few founder friends reach out to me asking about how much equity to give to an advisor, and had some operators reach out asking how to become an advisor for an early stage founder. I have been on both sides of the cap table of advisors. Some are there the entire time. Some are not.

Early Stage 103

Early Stage Equity Vesting Cap Table 103

ithacaVC

DECEMBER 13, 2013

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).

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

NZ Entrepreneur

DECEMBER 18, 2022

Commercialisation offices take a flexible approach to cap tables structures “We have a mandate to create impact from university research through commercialisation, so we are laser focused on setting new ventures up for success. Naturally, seeking investment once a company is ready to spin-out is a key part of that,” says Pierre.

Cap Table 52

Cap Table Technical Cofounder Artificial Inteligence Marketing 52

Both Sides of the Table

FEBRUARY 15, 2016

And recaps hurt founders so often people just avoid doing them. How Complicated is Your Cap Table? Cap Table issues are seldom understood by entrepreneurs. You are in a classic cap table pinch. They may suggest cap table adjustments as a compromise. Let me explain.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Hunter Walker

FEBRUARY 20, 2024

Founder Vesting [Jared Hecht/USV] – Jared joined USV earlier this year and it’ll be interesting to see how his writing changes as he adds ‘institutional VC’ to his founder and angel investor knowledge. Stretching things out to a six-year vest helps to prevent co-founder abandonment.

Founder Vesting 59

Founder Vesting Vesting Cap Table Founder 59

Both Sides of the Table

AUGUST 28, 2012

Another VC called the co-founder & tech head – Parker Harris. They want to see your cap table, your legal documents, your major contracts, your full financial model, etc. They can get at the most important information early on by simply asking you : How much of the company do the founders own?

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 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 93

Cap Table Dilution Equity Deal Structure 93

Hearpreneur

AUGUST 20, 2023

#4- Find the right relationships Photo Credit: Mike Pio Roda “Never leave money on the table” might seem tempting, but it's not always the wisest path for founders and business owners. While this advice isn't entirely incorrect, I've come to realize that it's insufficient. Thanks to Dmitrii Kustov, RegexSeo ! #13-

Entrepreneur 78

Entrepreneur Cap Table Dividend Cofounder 78

Hunter Walker

DECEMBER 11, 2023

He’s founder and CEO of Greenhouse , a ‘hiring operating system’ for companies which spans recruiting and onboarding tools for enterprises and SMEs. Hunter Walk: Before we dive into your company Greenhouse , give me one story from your childhood that foretold you were going to end up a startup founder.

Private Equity 78

Private Equity Equity DC Leveraged Buyout 78

Hunter Walker

JANUARY 2, 2017

” But we also knew that most Fortune 500 M&A transactions aren’t at unicorn levels (actually well sub-$250m), so we advise founders to not over-raise capital until they’re using it to fund profitable growth (or a clear path to profitability). OR, the team and/or investors will be ready to take their money off the table.

Technical Review 115

Technical Review Cap Table Acquisition Startup 115

OnlyOnce

FEBRUARY 1, 2024

Here’s one to keep in mind – we did this a few times at Return Path, and I was just reminded of it when I was coaching another founder who is doing the same thing right now. Why would the cap table of the target company agree to this? Think of it as a contemporary corporate version of the dowry.

Cap Table 71

Cap Table Common Stock Acquisition Stock 71

Hunter Walker

MARCH 15, 2018

While reading Brotopia, we were also helping theSkimm finish up their new financing , with Google Ventures and Spanx founder Sara Blakely joining the cap table. During that time I’ve heard many male media founders lauded as “visionary” – Jonah Peretti, Shane Smith, Bill Simmons.

Technical Review 71

Technical Review Cap Table Venture Capital Finance 71

NZ Entrepreneur

JUNE 21, 2022

Welcome to ‘500 Founders’ where we ask startup founders and innovators from around New Zealand, What is one piece of advice you would give to people working on their first startup and why? Tina Chou – Founder. ” Dean Brown – Founder. Thomas Clyma – Cofounder. TheTestMart. Triage-Plus.

Founder 88

Founder Cap Table Cofounder New Zealand 88

Hunter Walker

SEPTEMBER 24, 2017

It’s in a founder’s natural disposition to want to convince people of their point of view. Earlier this summer an engaging and forward-thinking founder told me a story from her in-process seed fundraise. Especially during fundraising. Convince me.'” ” Her response?

Founder 126

Founder Cap Table Conversion Operations 126

Startup Professionals Musings

JANUARY 18, 2016

Remember that investors at this stage have heard primarily from the founder, and only reviewed written business plans and collateral. Be prepared to present a detailed cap table, identifying by percentage all owners, investors and debtors. The same is true of Dragon’s Den and Shark Tank investments you see on TV.

Technical Review 120

Technical Review Due Diligence Cap Table Intellectual Property 120

Hunter Walker

OCTOBER 31, 2021

Fund people/ideas ahead of consensus — that is, find founders and markets that aren’t currently being chased by the mainstream and get to conviction ahead of the pack. 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. Lead/Co-Lead Checks of $750k+ for 8+% ownership.

Cap Table 122

Cap Table Cofounder Early Stage Portfolio 122

ithacaVC

SEPTEMBER 4, 2011

Here is the latest edition of Finance Fridays from Brad Feld called “Introducing the Cap Table and CTO” Every startup needs someone to be in charge of the Cap Table. When I was General Counsel at a tech company during the 1999 bubble times, I kept the company’s Cap Table.

Cap Table 49

Cap Table Finance Option Pool Warrant 49

View from Seed

OCTOBER 11, 2022

At the seed stage and as companies scale, helping the founders I work with identify and reach their goals, personally and professionally, gives me energy and purpose. As I hit the ground running, I’m cognizant that this is a time of uncertainty and turbulence for founders and investors alike.

North America 156

North America San Francisco Cap Table Cofounder 156

Both Sides of the Table

JULY 7, 2015

Another founder … “When I pitched the idea to Adam, he was super on board,” Mr. Sloyan said. If anything it felt like a public service to founders to me. Founder fighting, IP lawsuits, high-profile resignations, trouble fund raising, bad product release, 409a complications, community is rebelling against the CEO: You.

Cap Table 150

Cap Table Cofounder Silicon Valley Startup 150

Version One Ventures

SEPTEMBER 20, 2018

One of the most important decisions for a founder of an early stage company is deciding who should be on the cap table. Lately, we have seen more founders grappling with the question of whether to include a Series A investor in their seed round.

Cap Table 351

Cap Table Due Diligence Early Stage Portfolio 351

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

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. Sometimes you can have a major internal problem related to the cap table–a founder with a lot of stock needs liquidity or you need to push this person out of the company.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

This is going to be BIG.

MAY 4, 2022

For most founders, fundraising is a struggle. Morality aside, I’d say given the inherent riskiness of startups, I’m not sure this would be a great addition to your cap table. What’s that investor going to be like in a board meeting when you as a female founder need their support or worse, actually their vote?

Cap Table 163

Cap Table Cofounder Private Equity Finance 163

Hunter Walker

NOVEMBER 21, 2018

When they’re at seed stage, we’re deferring to the founders’ decisions but also trying to help them understand the challenges associated with a hard pivot if their cap table isn’t supportive of the direction.

Founder 96

Founder Cap Table Seed Stage Cofounder 96

Hunter Walker

AUGUST 8, 2023

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. Funds will get rightsized , which helps better align investors and founders in what defines a successful outcome.

Portfolio 98

Portfolio Cap Table LP Valuation 98

ithacaVC

DECEMBER 9, 2013

Also, during the process, we had to clean up the company’s cap table and make sure that we all agreed on who owned what on a pro forma pre-money basis. Without having a complete pre-money cap table, it is impossible to calculate a share price. And they were typically good answers.

Term Sheet 58

Term Sheet Cap Table Technical Review IP 58

Austin Startup

OCTOBER 27, 2017

TL;DR : “Founder friendliness” should mean not being hostile, but also not being submissive, to founders. Common Stock Ask the Users Because we’re known as Startup/VC lawyers who don’t represent VCs (just companies), I often get asked about my thoughts on “founder friendliness.” Good entrepreneurs and advisors know that.

Founder 48

Founder Cap Table Preferred Stock Common Stock 48

Up and Running

JULY 2, 2014

This should be clearly spelled out in your Capitalization Table , or “Cap Table” as it’s commonly called. A Cap Table shows who owns the company, what the ownership shares are, and what the owners have invested in exchange for that share. I’d love to hear your startup failure stories.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

www.informationarbitrage.com

FEBRUARY 24, 2010

Main February 23, 2010 Advice for CTO Founders: Dont Let Business Kill the Business Founding a technology company is an amazing thing. Too often, however, I have found CTO / Founders paired with business people who not only don't add value, but frequently detract from the value of the business. So my advice to CTO / Founders?

CTO Hire 40

CTO Hire Founder Cap Table Vesting 40

Genuine VC

SEPTEMBER 5, 2012

The following is a first pass at a checklist of items for Founder CEOs to take care of in the first couple weeks after they’ve closed their initial round of seed funding. Communications with New Board & Investors Ensure all of your investors have all legal documentation of the round, including an electronic version of the final cap table.

Founder 156

Founder Cap Table Stock Options PR 156

Hunter Walker

SEPTEMBER 15, 2023

I’m defining Top 10% and Second 10% as “degree to which their founders, markets, and milestones pattern-match for the average seed investor.” When $20B outcomes occur everyone on the cap table eats well. ” This is obviously imperfect and to truly segment quality would take 10+ years. It’s just math.

Cap Table 93

Cap Table Valuation Salary Seed Stage 93

Hunter Walker

MAY 13, 2023

I was on both sides of these transactions – buying startups for Google/YouTube and angel investing in high quality technical founders. Cash is at a premium so it’s not going to cap tables (preferred or common walk away from the deals with no dinero). of the time my answer is no f **g way].

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

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. So how does this work in practice? Entrepreneur : “Sure.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336