ithacaVC

APRIL 25, 2014

I thought it might be useful to post up a model cap table ( Cap Table Model with Waterfall ). This cap table can be used by a pre-funded startup and then a financing can be layered in. In other words, it shows both pre-money and post-money very clearly. Here are things to note: 1.

Cap Table 79

Cap Table Preferred Stock Pre-Money Valuation Participating Preferred 79

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

Berkonomics

MARCH 7, 2019

The risk of the “dirty cap table”. The PPM does nothing to mitigate that problem when the investor is not accredited. To compound the problem, often stock is issued by the entrepreneur without filing any report of such issuance with the state of issue.

Cap Table 61

Cap Table SEC Private Placement Accredited Investor 61

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

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

NZ Entrepreneur

SEPTEMBER 9, 2024

LegalVision’s experienced capital raising team can help you draft and review term sheets, subscription and shareholder agreements, advise on capital raising and corporate governance, set up a cap table, and negotiate with investors. For example, a company structure may reduce risk by separating company assets from personal assets.

Cap Table 52

Cap Table Intellectual Property Technical Review New Zealand 52

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 Syndication Syndicate 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

SEPTEMBER 10, 2024

Plus, your execs, the rest of your cap table, and your board often will have to deal with this person. Even the best board member in the world can only do so much, but a bad one can hold up or nuke a future fundraise/acquisition, be a constant source of aggravation, and even lead a charge to fire you.

Venture Capital 65

Venture Capital Silicon Valley Memphis Cap Table 65

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 104

Technical Review Due Diligence Cap Table Startup 104

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

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

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

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

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 108

Cofounder Founder Technical Review Seattle 108

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 88

.Net Cap Table Startup Technical Review 88

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 125

Cap Table Cofounder Early Stage Portfolio 125

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 119

Technical Review Cap Table Acquisition Startup 119

Hunter Walker

NOVEMBER 10, 2024

Now there are many more folks on startup cap tables with access to incremental capital to purchase slugs of stock, plus many fund LPs are looking for direct investment access. Repeating from above, ‘playing the game on the field’ means considering selling portions of your stake.

Cap Table 97

Cap Table Dilution Valuation .Net 97

Both Sides of the Table

FEBRUARY 8, 2016

If you need to clean up your own cap table first – while very hard to do – it will make outside funding easier. New investors often prefer to back newer companies that have never been through this drama. In my mind this simply means. Start early. Give yourself enough runway but controlling costs. Be realistic on valuation.

Burn Rate 150

Burn Rate Cap Table Valuation Balance Sheet 150

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 73

Technical Review Cap Table Venture Capital Finance 73

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

Hunter Walker

SEPTEMBER 29, 2022

You don’t bring investors on to the cap table via a secondary transaction that are going to be problematic. Even if we believe a company has tremendous longterm upside, it’s not inappropriate to take some money off the table in order to manage that risk. You don’t try to reprice the company on your own.

Venture Capital 126

Venture Capital Cap Table LP Equity 126

This is going to be BIG.

JUNE 20, 2024

Most of the criteria I listed above is all about being someone the very best and highest potential founders want on their cap table—and that’s the most important path to having great returns.

Deal Flow 147

Deal Flow Syndication Syndicate Cap Table 147

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

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

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 98

Cap Table Seed Stage Syndication Syndicate 98

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