Up and Running

SEPTEMBER 20, 2021

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? Let’s dive in.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Hunter Walker

MAY 17, 2024

“Admirer from outside of the cap table” is how I approached Kieran Snyder , Cofounder of Textio. In the medium term, we ended up prioritizing a combination of places where current employees wanted to live and those where we could tap into a great local talent pool. And that’s still where Textio is today.

Cofounder 132

Cofounder Founder Technical Review Seattle 132

David Teten

SEPTEMBER 6, 2018

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

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

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

Technical Review 60

Technical Review Private Equity Management Cap Table 60

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. So let’s talk about the components of the 2,456,758 share number.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. 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. . VisibleVC helps companies to provide data-driven updates.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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. Commercial contracts : Your business needs contracts for suppliers, customers and employees.

Cap Table 52

Cap Table Intellectual Property Technical Review New Zealand 52

keen.io

FEBRUARY 5, 2013

From there, I began googling things like “first employee startup equity” and “startup offer negotiation.” These were the best resources I found: Equity for Early Employees in Early Stage Startups. Startup Equity for Early Employees. We had a big team meeting, with all three founders and all three potential new employees.

Salary 50

Salary Equity Startup San Francisco 50

VC Adventure

MAY 10, 2020

The program allows businesses with fewer than 500 employees to apply for low-interest loans to pay for their payroll, rent, and utilities. The result has been not just confusion but also job losses that were likely not what Congress intended the program to result in. Exactly what this means isn’t clear.

SBA 77

SBA Affiliate Los Angeles Cap Table 77

OnlyOnce

JULY 30, 2020

You’re also creating some chaos and uncertainty for all your employees. 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.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

Berkonomics

MARCH 8, 2012

There is an exemption for members of the entrepreneur’s family and in some cases for close friends with intimate knowledge of the entrepreneur and of the plan and, of course, for employees of the company. It is worth checking with an attorney to see if such investors are truly exempt.

Cap Table 74

Cap Table Private Placement SEC Accredited Investor 74

Board Effect

MAY 10, 2019

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?

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

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

View from Seed

AUGUST 6, 2015

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees. Check out Fred Wilson’s Skillshare class on Employee Equity and Brad Feld’s post on Equity Compensation Terms.

Equity 120

Equity Employee Cap Table Startup 120

View from Seed

AUGUST 6, 2015

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees. Check out Fred Wilson’s Skillshare class on Employee Equity and Brad Feld’s post on Equity Compensation Terms.

Equity 120

Equity Employee Cap Table Startup 120

Austin Startup

AUGUST 20, 2017

Your Cap Table is something that deserves constant care and attention. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Messy cap tables can come back to haunt you when you do a financing or sell the company.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Berkonomics

MARCH 7, 2019

There is an exemption for members of the entrepreneur’s family and in some cases for close friends with intimate knowledge of the entrepreneur and of the plan and, of course, for employees of the company. The risk of the “dirty cap table”. It is worth checking with an attorney to see if such investors are truly exempt.

Cap Table 61

Cap Table SEC Private Placement Accredited Investor 61

adamac.blogspot.com

MARCH 9, 2010

Adam MacBeth Tuesday, April 07, 2009 10 Startup Red Flags Ive worked on a number of startups: from seed-stage through IPO, as a founder, employee, advisor, and consultant, as well as evaluating a bunch from the outside, so Ive seen my share of screw-ups. Adamac Attack! Either way, its a sign that something is amiss. leadership) problem.

Technical Review 41

Technical Review CTO Hire Fractional CTO Startup 41

Hunter Walker

SEPTEMBER 29, 2022

As more growth and crossover investors came into the startup ecosystem they were often eager to put capital to work and happy to consolidate their positions with common or preferred shares from early employees, founders and previous investors. We’re aligned with the founders and the rest of the cap table until we aren’t.

Venture Capital 154

Venture Capital Cap Table LP Equity 154

Genuine VC

SEPTEMBER 5, 2012

Communications with New Board & Investors Ensure all of your investors have all legal documentation of the round, including an electronic version of the final cap table. Foundation for New Employee Hires Formulate and socialize with the Board acceptable compensation bands (both salary and equity options) for new employees.

Founder 156

Founder Cap Table Stock Options PR 156

The Next Web

OCTOBER 21, 2013

More often than not, these companies have no formal option pool, although many have either formal or informal promises to grant options to key employees. Having them be part of your cap table, with an investment that is probably trivial to them, will likely entail more negatives than positives.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

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

YoungUpstarts

JUNE 26, 2014

It allows you to truly focus on your product/idea instead of cap tables and keeping investors happy. Allow your friends and family to help you with research and any other aspects of your start up, but beware hiring them as employees. I personally had to fire two friends-turned employees and we are no longer friends.

Cap Table 162

Cap Table Bootstrapping Naming America 162

Gust

NOVEMBER 15, 2012

But by far the biggest issue is that the very essence of public markets (and what makes them “public”) is that the SEC mandates an enormous amount of transparency, including complete quarterly financial statements, complete publication of the company’s cap table including all significant shareholders, and so forth.

Seed Stage 131

Seed Stage Hockey Stick Cap Table Liquidation Preference 131

Berkonomics

FEBRUARY 27, 2020

There is an exemption for members of the entrepreneur’s family and in some cases for close friends with intimate knowledge of the entrepreneur and of the plan and, of course, for employees of the company. It is worth checking with an attorney to see if such investors are truly exempt. Does issuing a PPM insulate the company?

Cap Table 62

Cap Table Private Placement SEC Accredited Investor 62

Hunter Walker

SEPTEMBER 24, 2017

This was a man who, despite agreeing to take the meeting, established within the first few minutes of their conversation that he wasn’t someone who was likely to end up on her cap table and even more importantly, probably someone she didn’t want there.

Founder 134

Founder Cap Table Conversion Operations 134

David Teten

AUGUST 19, 2019

The mode purpose for funding is (in order of frequency) Sales, Marketing, Market Expansion, Product Development, and Hiring Employees. Limited amount of existing debt and a clean cap table”. Jared Weitz, Founder & CEO, said, “[Our] typical RBF client is $120K-$20M in annual revenue, with 4-200 employees.

Revenue 60

Revenue Technical Review Software Review Equity 60

Hunter Walker

AUGUST 1, 2021

That was the first day that current and former employees could cash out all of their shares after the company went public. Those of us who’ve had access to the right hiring manager, or cap table, or referral network have already put ourselves in a position to capitalize, but the pie can be expanded. 18 was “giraffe money” day.

Silicon Valley 127

Silicon Valley Cap Table IPO .Net 127

genylabs.typepad.com

SEPTEMBER 24, 2011

I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. My post looks at this from the consultant/employee point of view. what kind of stock you are getting. what your rights are.

Equity 40

Equity Technical Review San Jose Stock 40

This is going to be BIG.

MAY 13, 2019

It could have made HR, diversity and employee experience a priority from the start. I have a portfolio where 50% of the investments have founders that come from diverse backgrounds—and yes, I want them to get money from all of the still-active funds on Uber’s cap table that benefitted from the IPO.

Cap Table 121

Cap Table Portfolio IPO Reputation 121

Hunter Walker

JUNE 25, 2022

Coinbase, which has been quite aggressive in defining what’s expected of you , isn’t my cup of tea, but I can still appreciate the clarity they are providing for potential employees. Whether I’m on an org chart or cap table, I’ve historically found that culture is the most difficult part of a company to refactor once matured.

Cap Table 128

Cap Table Matching Hiring Business Model 128

ithacaVC

SEPTEMBER 10, 2012

For example, let’s say Exec X is asking for 10% of the fully diluted cap table via a stock grant or option grant that is non-dilutable. He is asking for 10% because he is joining as a high level officer like CEO or COO and he is a very early employee. It is legally possible to grant non-dilution via a contractual right.

Dilution 53

Dilution Employee Cap Table Equity 53

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

David Teten

SEPTEMBER 23, 2017

EShares is an increasingly popular tool in our portfolio for tracking private company cap tables. Satisfying LP demands and streamlining the valuation process are primary drivers in those clients’ adoption of Ipreo’s portfolio monitoring and valuation solutions, iLEVEL, iVAL, and Qval. .

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Hunter Walker

FEBRUARY 15, 2023

Claire got to experience, and played a large part in, Stripe’s proverbial rocketship, blossoming into thousands of employees, generating billions of dollars in revenue and valuation. While at the company — and especially once she departed — Claire became one of the people I always hoped to add to a cap table or startup board.

Cap Table 106

Cap Table Hiring Viral Valuation 106

Hunter Walker

NOVEMBER 13, 2018

It’s essentially a private IPO where early investors, founders and employees get some liquidity and Softbank gets minority ownership, maybe a Board seat. Cool, cool.

Cap Table 109

Cap Table IRR IPO Early Stage 109

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. NOTE: If youre an attorney or tax accountant with experience helping startup employees with stock and option issues, drop me a note. The preferred stock held by investors has (as the name implies) more rights and privileges than the common stock issued to employees. From Payne.org Wiki. 3 Dilution.

Equity 56

Equity Employee Vesting Preferred Stock 56