article thumbnail

Users Guide to Startup Advisors

Gust

Those names and faces and backgrounds that turn up in pitches and business plans might be deep and important relationships, somebody with options or equity who is going to be helping for the long term; or meaningless fluff, somebody who agreed once to have his or her name appear, but really does nothing. . Equity is forever.

Startup 165
article thumbnail

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.

Equity 40
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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.

Cap Table 112
article thumbnail

Cap Tables Explained: Guide to Understanding Cap Tables

Board Effect

Capitalization tables—”cap tables” for those who don’t have time for extra syllables—map the balance of power in a company. If org charts are about people power , cap tables are about money power. In reality, however, cap tables are often far more complex. What is a cap table? Shareholders: Name & Role.

article thumbnail

Startup Equity For Employees

www.payne.org

The preferred stock held by investors has (as the name implies) more rights and privileges than the common stock issued to employees. Also, most companies try to keep all employees on the same terms, and there are good management reasons to do that. Some vesting plans may accelerate vesting for certain events, such as an acquisition.

Equity 56
article thumbnail

On the Road to Recap:

abovethecrowd.com

These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. We have already seen examples of founders and management obtaining liquidity in front of investors. They basically cannot afford to expose themselves to any more risk in a particular name.

IPO 40
article thumbnail

Episode 8: Charlie’s Bcast Email, Startup Incubators, and 10 Reasons Why Startups Fail | The Bcast

Up and Running

His name is Charlie and he responded to our question last week about whether you should stick to the plan or change it. Peter: Well, fortunately I know how to pronounce his name because I felt and that was some of his incubator work but Joe is a local entrepreneurial champion here in Oregon. He says, “Hey guys. Great episode.