David Teten

JANUARY 19, 2021

Flexible VCs also offer investors some of the same advantages as RBI: Clear return expectations : The return cap is a stated multiple of the investment, typically 2-5x. . Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Early liquidity. Equity VC is a “get rich slow” business.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

APRIL 8, 2010

Then they had a five-year P&L statement, balance sheet, cash flow and cap table. This includes how the product gets distributed to your customers and how money flows back into your company. It was an exquisitely crafted plan. Finally, they took the plan and boiled it down to 15 of the prettiest slides you ever saw.

Business Model 332

Business Model Business Plan Customer Cap Table 332

This is going to be BIG.

JANUARY 18, 2024

On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation. 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.

.Net 88

.Net Cap Table Startup Technical Review 88

VC Adventure

MAY 10, 2020

This exacerbated the first issue and meant that anyone considering a loan needed to rush to apply and many companies did so without the space and time to think through whether it made sense for them. Exactly what this means isn’t clear.

SBA 77

SBA Affiliate Los Angeles Cap Table 77

Genuine VC

MAY 20, 2013

VCs who swear publicly that they’ll never make an investment with less than 20% ownership show up on cap tables in the teens… the 20% pronouncements are just posturing for negotiation. People are accustomed to normal distributions, as they’re both intuitive and commonplace.

Venture Capital 244

Venture Capital Cap Table Portfolio Early Stage 244

David Teten

DECEMBER 3, 2019

645 Ventures released a cap table simulator to help level the playing field. Carta , Captable.io , Certent , EquityEffect , and ShareWorks by Morgan Stanley track private company cap tables. . Some technology vendors are providing options to limit distribution of confidential information from GP reports.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Version One Ventures

DECEMBER 3, 2019

We loved the product, but weren’t convinced it would get much distribution quickly. Carta went on to become the standard for cap table management and is a unicorn many times over. . And, we passed on the opportunity to invest every single time as we were too hung up on their dependency on AirBnB for distribution.

Portfolio 201

Portfolio Cap Table Early Stage Valuation 201

Gust

MARCH 17, 2025

Investors expect them, they help protect your cap table, and they ensure that equity is fairly distributed over time. Vesting schedules arent just a formalitytheyre a fundamental part of building a strong, aligned founding team.

Common Stock 127

Common Stock Vesting Stock Cap Table 127

VC Adventure

AUGUST 15, 2018

It was a benefit to employees and a slight value transfer from equity holders to option holders (generally speaking in M&A transactions the value of the aggregate option exercise ends up allocated across the rest of the cap table).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

VC Adventure

JULY 27, 2011

First – they achieved a significantly better tax outcome on the distribution of proceeds. This helped them with a number of things. More importantly, this handily resulted in their ability to completely wipe out the common ownership in the business. That’s right. Aren’t there lawyers involved? How could they let this happen?

Technical Review 48

Technical Review Due Diligence Cap Table Distribution 48

The Next Web

OCTOBER 21, 2013

In these cases, the equation is basically unsolvable and doing a round with a venture investor risks entangling the founders in endless meetings and conference calls with their angel backers to find a compromise that will allow them essentially to rewrite their cap table.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

David Teten

DECEMBER 12, 2017

Ramanan Raghavendran, Managing Partner at Amasia , explains how they’re managing their processes: “At Amasia, our distributed presence on both sides of the Pacific mandates the use of technology to be effective, timely and coordinated. Some firms use iLevel or Qualtrics to assist reporting requirements.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

View from Seed

DECEMBER 11, 2019

However, as we’ve seen from recent salient stories , these can be ephemeral and don’t end up mattering in the end… they’re really just approximations based on the market for buying a piece of a company’s cap table, not buying the whole thing or making it public. Venture is a field with a power-law distribution of outcomes.

Venture Capital 204

Venture Capital Cap Table Partner LP 204

Startup Lessons Learned

JULY 11, 2019

Eventually, I joined Jenny Lefcourt in the initiative called Founders for Change, where we’re amplifying the voices of the founders who are demanding greater representation and diversity not only within their organization, their cap table, and their board rooms, but also in terms of the makeup of all of these organizations.

Founder 68

Founder Lean Venture Capital Cofounder 68

Haystack

DECEMBER 17, 2019

They then, in turn, brought that software into their small businesses, their sub-groups within companies, and provided the kindling of distribution within work-related networks. While that consumer window was no longer opening, individual consumers began discovering new software tools to make themselves more productive.

Cap Table 113

Cap Table Finance Database Software 113

Hunter Walker

FEBRUARY 20, 2024

Here the focus is on Pink Stuff, a British cleaning paste, which was #CleanTok mainstreamed to a quadrupling of revenue ($125m annually) and distribution to 55 countries. Many times we’ll never know, but the random products that end up popping because of a TikTok trend are always pretty fascinating anthropological stories.

Founder Vesting 85

Founder Vesting Vesting Cap Table Founder 85

Hunter Walker

FEBRUARY 2, 2023

Or ask your cap table who is the best “XYZ” that they know and give them some skin in the game. You can even present it as part of their ‘comp’ — an equity grant they have ability to distribute (with your approval). If there’s someone in industry she really admires but doesn’t yet know, reach out to them on her behalf.

Hiring 85

Hiring Cap Table Equity Dividend 85

This is going to be BIG.

NOVEMBER 16, 2023

Besides being “busy doing great deals and distributing cash to your LPs”, what are they’re actually doing to make that happen? That’s how it feels when your hot deal from two years ago winds up running low on cash and gets into a pay-to-play round that wipes out the cap table. But I thought I was good!?” You have outcomes.

Non-Compete 97

Non-Compete Cofounder Cap Table Reputation 97

Bryce Dot VC

JANUARY 5, 2015

Is it possible to maintain and independent attitude and ethos with an outside investor on your cap table? Tho we plan to have some in person time required, much of the program content and network is designed to be distributed and online. . Would an early focus on cashflow and sustainability v.

San Francisco 40

San Francisco Cap Table Non-Compete Distribution 40

abovethecrowd.com

APRIL 20, 2016

You can no longer simply look at the cap table and estimate your return. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches. The adjustment does not happen now, it will happen later. Dirty term sheets are a massive problem for two reasons.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Startup Lessons Learned

MAY 4, 2021

Can institutions be totally distributed or should they be rooted and loyal to a certain community or geography? And in this crypto algorithm, they said, well, since we're all making this distributed ledger, we now have provably unique digital items that I can send to you, Eric. Do we need more regulation in this area or less?

IPO 113

IPO Cofounder Technical Review Government 113

David Teten

MARCH 18, 2021

Foundry Group, investing primarily in “ Software and Internet ”, follows six major themes, e.g., Human Computer Interaction (HCI) or Distribution. “Index the Best” – Only invest in companies that have brand name firms on the cap table and/or as leads. 7) Stage-defined funds.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78