Gust

JUNE 22, 2016

The post Gust Launches Comprehensive Equity Management Platform for Cap Table Management and 409A Valuations appeared first on The Gust Blog. The new platform provides early-stage companies with powerful. Read more >.

Cap Table 93

Cap Table Valuation Equity Management 93

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

David Teten

MAY 20, 2016

As one of the lead engineers at ff Venture Capital , I spend most of my day building custom software solutions that enhance our firm’s process–tools that range from portfolio investment management to co-investor and cap table tracking and more. We posted on our site a more in-depth overview of ff’s Tech Platform.

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

ithacaVC

DECEMBER 13, 2013

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. On a fully diluted pre-money basis, that would mean the option pool represents 14.5% (356,758/2,456,758) of the cap table. times more equity than Founder X. Well, that is really up to Founder X and Founder Y.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Feld Thoughts

FEBRUARY 9, 2016

“If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier” Again, go read the post now – I’ll wait. Deal with reality as a founder as well as an investor group and avoid this complexity – just clean up your cap table instead.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Version One Ventures

MAY 22, 2018

How do you decide who you should have in your cap table? The post The “reverse” pitch: Who should you have on your cap table? If you find yourself in the fortunate position of being oversubscribed, you’ll likely look to build the best investor base and find the right partners for your journey.

Cap Table 60

Cap Table Cofounder Syndicate Syndication 60

View from Seed

JANUARY 15, 2020

Consider the interests of everyone on the cap table. Don’t ask “who else are you talking to” or “who else is in” unless founders have already referenced other investors. Don’t ghost. Help to create focus vs. create distractions. Are engaged when things are challenging. Play a multi-turn game. Focus on culture.

Cap Table 166

Cap Table Florida Portfolio Founder 166

Both Sides of the Table

FEBRUARY 15, 2016

How Complicated is Your Cap Table? Cap Table issues are seldom understood by entrepreneurs. If you raised a $2 million seed round at a $6 million pre then a $5 million A-round at a $20 million pre then a $20 million B-round at a $80 million pre and if your company has stalled you may have a cap table problem.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Hunter Walker

MAY 17, 2024

“Admirer from outside of the cap table” is how I approached Kieran Snyder , Cofounder of Textio. That is to say, I DMed her on Twitter in 2016, impressed by the work she was doing but without a preexisting relationship.

Cofounder 96

Cofounder Founder Technical Review Seattle 96

VC Cafe

JANUARY 30, 2023

SAFE note), shareholder agreements, company formation and governance documents (e.g. articles of incorporation, bylaws, shareholder agreements), employment contracts, patents and trademarks, contracts with providers, SEC filings, licenses Business documents – client contracts, pipeline (can be redacted: i.e

Technical Review 103

Technical Review Due Diligence Cap Table Startup 103

Berkonomics

FEBRUARY 27, 2020

How it happens. When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Investors love to see entrepreneurs who have used their own money to ignite their businesses. But often, entrepreneurs turn to others for initial capital.

Cap Table 62

Cap Table Private Placement SEC Accredited Investor 62

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

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

Eric Friedman

NOVEMBER 18, 2022

I have been on both sides of the cap table of advisors. Having them on your cap table, or even in your slide deck as an advisor would bring you credibility.] With this in mind I am updating my thinking and math from the previous post, as well as adding some new questions.

Early Stage 103

Early Stage Equity Vesting Cap Table 103

This is going to be BIG.

JANUARY 18, 2024

This is a business and the goal should be to get the best people at every position, regardless of their position on the cap table. I get that you want to play baseball but do that on your own time. I would be wary of an investor who tries to insert themselves into the company before watching it operate for a while.

.Net 89

.Net Cap Table Startup Technical Review 89

Both Sides of the Table

AUGUST 28, 2012

They want to see your cap table, your legal documents, your major contracts, your full financial model, etc. There is no reason to part with your cap table or legal docs until you’re convinced that they’re actually committed to doing work with you in due diligence. In my opinion that is totally old school.

Technical Review 316

Technical Review Due Diligence Term Sheet Cap Table 316

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

Hearpreneur

AUGUST 20, 2023

And, over-fundraising can trigger a domino effect of complications, from cap-table issues to inflated valuations, which can ruin future fundraising. Specifically when fundraising, it isn't just about gathering a war chest – it's about finding the right relationships with the right investors who offer more than just capital.

Entrepreneur 84

Entrepreneur Cap Table Dividend Cofounder 84

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

Hunter Walker

OCTOBER 31, 2021

Be more helpful than the folks on cap tables today who overpromise and underdeliver — every cap table I’m on has some percentage of allocation that provided zero value after the investment. 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.

Cap Table 122

Cap Table Cofounder Early Stage Portfolio 122

Hunter Walker

JANUARY 2, 2017

The total value of these deals might look higher than when a tech company makes an acquihire but the premium tends to go to retention rather than the cap table (especially since (a) the acquirer might not be seen as an ‘attractive’ place to work and (b) there’s assumption of less equity upside post-acquisition).

Technical Review 115

Technical Review Cap Table Acquisition Startup 115

OnlyOnce

FEBRUARY 1, 2024

Why would the cap table of the target company agree to this? That’s right, not only do you not have to put cash OUT for the deal, you’re getting additional cash IN. Think of it as a contemporary corporate version of the dowry.

Cap Table 71

Cap Table Common Stock Acquisition Stock 71

Berkonomics

MARCH 8, 2012

When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” Investors love to see entrepreneurs who have used their own money to ignite their businesses. But often, entrepreneurs turn to others for initial capital.

Cap Table 74

Cap Table Private Placement SEC Accredited Investor 74

David Teten

SEPTEMBER 6, 2018

We also use Carta , which specializes in cap table management and has just launched a fund administration service which we have transitioned to. See best practices in building financial models , a template financial model , and valuing startup employee options. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

We also use Carta , which specializes in cap table management and has just launched a fund administration service which we have transitioned to. See best practices in building financial models , a template financial model , and valuing startup employee options. 8) Monitor and report investments.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

Startup Professionals Musings

JANUARY 18, 2016

Be prepared to present a detailed cap table, identifying by percentage all owners, investors and debtors. Again, you need to head off any surprises by making sure you have mentioned all key competitors and thoroughly prepped the investor team on your strategy and direction. Business structure and financial risks.

Technical Review 120

Technical Review Due Diligence Cap Table Intellectual Property 120

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. Over the past five years, I’ve witnessed theSkimm be underestimated by the venture capital industry, by pundits and press.

Technical Review 71

Technical Review Cap Table Venture Capital Finance 71

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

ReadWriteStart

SEPTEMBER 2, 2011

As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Remember, once you screw up your Cap Table it's really hard to go back.

Cap Table 125

Cap Table Term Sheet Liquidation Preference Technical Review 125

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. Whatever gets reported is just the tip of the iceberg. Sometimes these are led by outside investors and old ones will just take the impact and walk away.

Portfolio 98

Portfolio Cap Table LP Valuation 98

Hunter Walker

SEPTEMBER 5, 2021

Startup CEOs Should Test Strength of Cap Table Every ~6 Months To Know Where They Stand. Lastly, Jason has a single very practical suggestion on what to do if your cap table is tapped out. I really liked Jason Lemkin’s “ Do You Have a Weak Investor Syndicate ” blog post from earlier in the summer.

Cap Table 94

Cap Table Seed Stage Syndicate Syndication 94

Hunter Walker

DECEMBER 11, 2023

HW: We’re going to see many more software CEOs (and cap tables) look for private equity exits like yours. It’s a different way of thinking and managing the business, but one that I believe helps any leader run a better business.

Private Equity 78

Private Equity Equity DC Leveraged Buyout 78

David Teten

JANUARY 19, 2021

Some firms provide tools to model investment, e.g., Capital’s Cost of Equity estimator ; Lighter Capital’s Cost of Capital Calculator ; Indie VC’s Cap Table Comparison Model ; 645 Ventures’ cap table simulator ; and Bootstrapp.co’s Comprehensive Cost of Capital Calculator.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

OnlyOnce

JULY 30, 2020

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. Or maybe when you look two years out you realize that your company is at its highwater mark in valuation, so it becomes a timing issue.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

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. We’ve written about doing your due diligence on investors and funds to make sure you find the right partners for the journey.

Cap Table 350

Cap Table Due Diligence Early Stage Portfolio 350

OnlyOnce

JULY 14, 2022

I wrote a little bit about the experience of being a multi-time founder in this post where I talked about the value of things like a hand-picked team, hand-picked cap table, experience that drives efficient execution, and starting with a clean slate. They have an Easier Time Recruiting team members and investors.

Cap Table 62

Cap Table Founder Portfolio Finance 62

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