David Teten

DECEMBER 3, 2019

The reports showcase raw data, analytics, visualizations, and benchmarking statistics on the company from dozens of sources, including team, intellectual property, technology, product, financial, banking, marketing, customer, risk, valuation, and investment information.”. If you have one, please contact me. 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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. For example, cell E2 is the spot to put in the negotiated pre-money valuation. Here are things to note: 1.

Cap Table 79

Cap Table Preferred Stock Pre-Money Valuation Participating Preferred 79

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. 2-5x return cap + path to uncapped equity returns. Yes, via conversion rights at a valuation cap. Typically ~3x+ return cap + path to uncapped equity returns. Flexible VC: Compensation-based. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings).

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. 9) Accelerate portfolio company value. 10) Time, market, and exit investment.

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. 9) Accelerate portfolio company value. 10) Time, market, and exit investment.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

VC Adventure

AUGUST 15, 2018

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Over night a cottage industry was created to conduct these valuations. So what should this discount be? I was wrong.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. Many entrepreneurs lose track of what they have been cooking up in the cap table.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

ithacaVC

DECEMBER 13, 2013

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. The share price is calculated by taking the pre-money valuation and dividing it by the number of shares outstanding pre-money. So Share Price (SP) = Pre-Money Valuation (PMV) / Shares Outstanding (SO).

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

techcrunch.com

APRIL 26, 2013

That way, startups only have one entity in the cap table, which simplifies documentation and structure. No wonder the platform is rumored to be raising a round at a $150 million valuation or more. Via SecondMarket, AngelList creates an LLC on the fly into which all the new investors go. The site is also a data goldmine.

SEC 61

SEC Accredited Investor San Diego New York City 61

The Startup Toolkit

AUGUST 29, 2012

You probably don’t need to get the cap table involved in that. You can give an investor an additional advisory kick to improve the terms (for them) without changing the valuation (for other investors). And sometimes it’s super ambiguous. You can also use advisor stakes to close big deals.

Technical Review 38

Technical Review CTO Hire Cap Table Software Review 38

Version One Ventures

DECEMBER 3, 2019

We had a chance to invest in a $500K round at a $12M valuation in 2015. This was not our early-stage sweet spot and the $100M valuation felt rich. Carta went on to become the standard for cap table management and is a unicorn many times over. . And yeah, $12M felt kind of high :-). Eight years and $49.9B

Portfolio 201

Portfolio Cap Table Early Stage Valuation 201

View from Seed

SEPTEMBER 23, 2019

To provide relevant perspective, listing past convertible note(s) and/or equity financing(s) including total round size and valuation (caps) is helpful. Previous venture firms’ specific involvement on the cap table should be noted here, though. What not to include is directly stating valuation expectations.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

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. But, as you raise more money at higher valuations, this will normalize. It will suck for a few days but feel a lot better in the long term.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Austin Startup

AUGUST 20, 2017

Your Cap Table is something that deserves constant care and attention. Keep the valuations consistent with company progress. Messy cap tables can come back to haunt you when you do a financing or sell the company. You will do yourself a great favor if you can maintain some uniformity in that endeavor.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

View from Seed

OCTOBER 15, 2014

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. However, these are important updates for your board to know.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

keen.io

FEBRUARY 5, 2013

This time, I was looking more closely at Keen’s cap table and various financial events, like raising Series A, becoming profitable, and company acquisition. We asked the founders to talk us through the financials, help us complete the detailed cap table, and discuss the offers together. What is the difference between.5%

Salary 50

Salary Equity Startup San Francisco 50

OnlyOnce

JULY 30, 2020

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. 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

Both Sides of the Table

SEPTEMBER 15, 2010

But knowing the right people and knowing a market only works well for angel investors in bullish tech markets in which IPO’s happen quickly (97-99) or where larger companies are actively scooping up little tiny companies at sub $50 million valuations to drive innovation (05-08, 10-?). So where are we now? It’s hard to say.

Angel Investor 284

Angel Investor Early Stage Cap Table Deal Flow 284

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

Gust

JUNE 28, 2014

Finally, make sure to keep all your books and records (including your option program, cap table and 409a valuations) accurate and up to date, so that you can respond quickly and professionally when your investors request information to establish valuations for their portfolios. Invested Interests'

Angel Groups 148

Angel Groups Cap Table Term Sheet Valuation 148

Gust

JANUARY 30, 2014

Viable business structure and cap table. Reasonable valuation. Competitive advantage. Platform/partnership/bizd ev/API strategy. External validation (ideally traction and/or passionate customers). Proven team (tech/product/design/mark eting/sales/domain/etc.). And the attributes I look for in that entrepreneur are: Integrity.

Cap Table 119

Cap Table API Valuation Startup 119

David Teten

SEPTEMBER 23, 2017

Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process. EShares is an increasingly popular tool in our portfolio for tracking private company cap tables.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Hunter Walker

SEPTEMBER 29, 2022

There were examples of great investors who said “never sell early — you ride your winners as long as you can” and others who had *very* specific formulas for when they sell (when it hits X valuation, take Y percent off the table each subsequent round; always sell until you hit a certain return multiple for the fund, then hold after; and so on).

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. Hire a firm to conduct a 409a valuation to set a strike price for your employee stock options, which nees to be at or above “fair market” value.

Founder 156

Founder Cap Table Stock Options PR 156

Hunter Walker

DECEMBER 24, 2018

I strongly believe the detailed story of the company’s success is the founders’ one to tell if they choose to do so, but at the risk of excessive inside baseball, I’ll share my perspectives from the cap table. So founders, please don’t let lack of existing relationships deter you from reaching out to us.

Cap Table 114

Cap Table Seed Stage Acquisition Vertical 114

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

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. what kind of stock you are getting. where your stock sits in the liquidity preference stack. what your rights are.

Equity 40

Equity Technical Review San Jose Stock 40

Hunter Walker

AUGUST 8, 2023

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations. Whatever gets reported is just the tip of the iceberg.

Portfolio 118

Portfolio Cap Table LP Valuation 118

View from Seed

JUNE 11, 2019

I believe it’s more important to optimize on the right lead investor vs. the highest valuations at the seed stage (within reason). In order to accomplish the things above, you will probably want to include more than 1–2 investors on your cap table. Remember Goldilocks, not too many, not too few. And stay in touch!

Syndicate 202

Syndicate Syndication Seed Stage Lead Investor 202

Hunter Walker

SEPTEMBER 15, 2023

Semil asserts, Seed-stage valuations have generally been left-unchanged, and I could argue even they’ve gone up since the beginning of 2022. Valuations for the Top Decile of Seed Startups Have Fallen Less YoY While the Second Decile Have Been Hit Harder. When $20B outcomes occur everyone on the cap table eats well.

Cap Table 117

Cap Table Valuation Salary Seed Stage 117

David Teten

DECEMBER 12, 2017

Our proprietary data science tool cumulatively looks at 100+ factors within 6 macroscopic categories: Team, Financial Performance, Customer and PR traction, Industry and Competition, Product and Brand value, Valuation, and Exit probability, to quantify an investment “Merit Score”.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Rob Go

AUGUST 29, 2016

When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. That is, the valuation of the company prior to the investment of new capital. Today, nearly all early stage term sheets I see are expressed as post-money valuations.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

View from Seed

DECEMBER 11, 2019

Yes, there are intermittent points of feedback along the way, like valuation marks from subsequent rounds of financing.

Venture Capital 204

Venture Capital Cap Table Partner LP 204

View from Seed

AUGUST 6, 2015

With this information an employee or potential employee can understand how much their X-thousands of shares are actually worth in ownership and, at least on paper, in dollars against the total valuation. This is not an argument for circulating the entire cap table or compensation calendar. Everyone deserves his or her privacy.

Equity 120

Equity Employee Cap Table Startup 120

View from Seed

AUGUST 6, 2015

With this information an employee or potential employee can understand how much their X-thousands of shares are actually worth in ownership and, at least on paper, in dollars against the total valuation. This is not an argument for circulating the entire cap table or compensation calendar. Everyone deserves his or her privacy.

Equity 120

Equity Employee Cap Table Startup 120

Both Sides of the Table

SEPTEMBER 14, 2010

But knowing the right people and knowing a market only works well for angel investors in bullish tech markets in which IPO’s happen quickly (97-99) or where larger companies are actively scooping up little tiny companies at sub $50 million valuations to drive innovation (05-08, 10-?). So where are we now? It’s hard to say.

Angel Investor 152

Angel Investor Cap Table Early Stage Deal Flow 152

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