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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

When it comes time to convert the notes, these entrepreneurs face ‘sticker shock’ about their post-financing ownership. The bottom line: Startup CEOs/Founders need to do the projected capitalization table math on an as-converted, post-money basis from Day 1, before issuing any notes and modeling various possible future scenarios.

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New San Diego VC Firm Emerges as ‘The Moneyball of Venture Capital’ | Xconomy

www.xconomy.com

Managing Director, Enterprise Partners. In fact, by using analytics software that relies on a different way of measuring risk, the San Diego firm is becoming known in some circles as “the Moneyball of venture capital,” according to David Coats, a co-founder and managing partner. President and CEO, Complete Genomics. Ben Elowitz.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. I can tell you that, among other problems, any uncertainty in the capitalization table when the company is acquired will be resolved squarely and unequivocally in favor of the buyer.

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7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

According to Yahoo Finance , less than a third of crowdfunding campaigns currently reach their goals, and the rest have to return anything they do collect. The infrastructure to manage thousands of shareholders in a single company, called the stock market for public companies, is missing. by either angel groups or VCs alone.

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Cap Table Explained — What is it and How to Maintain it for Investors

Up and Running

This is all incorporated into a document called a Cap Table. . A cap table will help you in the strategic management of business decisions. Wondering what a cap table is, its importance, and how you can maintain it to expand your business? What is a cap table? A cap table is also known as the capitalization table.

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On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. By the first quarter of 2016, the late-stage financing market had changed materially.

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Startup Equity For Employees

www.payne.org

Also, most companies try to keep all employees on the same terms, and there are good management reasons to do that. At a minimum, do your own personal finance homework so you know how much salary you need to live and not spend your savings. The other factor is the "cap table" (capitalization table, or summary of who owns what stock).

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