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The BSList - Busted Cap Table (No. 104)

This is going to be BIG.

In other words, you’re one of dozens, perhaps 100’s of companies getting the same exact e-mail where the VC says they’re really excited about what you’re doing and they work with such and such partner and the firm has done such and such IPOs, etc. But back to the cap table. and they take a hefty chunk of the cap table to do it.

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The Changing Structure of the VC Industry

Both Sides of the Table

Cheap, mobile, social, global, massive, always-on, one-click-purchase has led to the most successful companies of our era hitting unprecedented scale early in their development and has massively shifted the value captured from post-IPO investors to pre-IPO investors as is demonstrated in the chart above.

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Greenhouse CEO Daniel Chait on how AI is changing human resources and weaning his company off venture funding via private equity

Hunter Walker

It might ‘exit’ again at a later point (anything from a sale to an IPO), but it’s no long dependent on VC funding. HW: We’re going to see many more software CEOs (and cap tables) look for private equity exits like yours. This means the company is predominantly owned by the management/team and TPG.

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Angel Investing 4 – Why You Need Deep Pockets to Win Big

Both Sides of the Table

But consider periods of time where the average time a company exists before acquisition or IPO is 7-10 years. And if you’re not busy being crushed (diluted) you might not notice that the people above you in the cap table (e.g. This is actually the norm. But it is. So know that going in.

Cap Table 283
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Off to the Races with Team Nextview

View from Seed

And I’ve been fortunate enough to witness their startups scale from ideas to $1B+ businesses (and even an IPO in the case of Poshmark). 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.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). On average, founders own just 43% of equity by Series B , declining thereafter. Volatile, uncapped. Andressen Horowitz,ff Venture Capital,HOF Capital, Sequoia . Flexible VC: Revenue -based.

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We Don’t Talk Enough About Money In Silicon Valley, Revisited

Hunter Walker

I never heard about giraffes after Google’s IPO, although reportedly one early engineer did buy a carnival-size ferris wheel. Those of us who’ve had access to the right hiring manager, or cap table, or referral network have already put ourselves in a position to capitalize, but the pie can be expanded.