Cap Table Distribution Finance 
Feld Thoughts
SEPTEMBER 2, 2011
As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. Rather, it gets recorded in a document called the Capitalization Table (or “Cap Table”), which shows the ownership stake each person or entity has in the business.
Hunter Walker
JANUARY 2, 2017
This keeps them aligned with their investors since a $250m exit with modest venture financing raised can be wonderful for all parties, but the same transaction can look awful if your last round was $60m on $300m pre! Next Level: Buying Customers/Revenue/Distribution. See Mint and Periscope as examples. Cruise was this. Jet was this.
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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. Further reading: The Evolution of Entrepreneurial Finance: A New Typology.
VC Adventure
MAY 10, 2020
Particularly confusing to many companies was the statement that companies needed to consider whether they had alternative financing options. 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.
Genuine VC
MAY 20, 2013
Compared to most other areas of finance, venture capital is practiced as more of an art, as opposed to a science. 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.
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). Similarly I assumed that later stage companies would also show a smaller gap. I was wrong.
David Teten
DECEMBER 3, 2019
Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. 645 Ventures released a cap table simulator to help level the playing field. 11) Exit .
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