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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. 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. Below you can see Jane and Dick own 55% and 45%, respectively.

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How to Pick the Right Attorney For Your Startup

Up and Running

We were targeting to raise around $3 million in investment capital. This should be clearly spelled out in your Capitalization Table , or “Cap Table” as it’s commonly called. A Cap Table shows who owns the company, what the ownership shares are, and what the owners have invested in exchange for that share.

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Venture Capital Demystified: A Fundraising Guide for Entrepreneurs, Investors, and Lawyers

YoungUpstarts

As an entrepreneur, your goal when raising financing is to get several term sheets — the documents describing the terms and conditions of financing. One of the worst positions you can be in during a financing is to have investors interested, but be too far short of your goal. Determine how much you need to raise.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

When it comes time to convert the notes, these entrepreneurs face ‘sticker shock’ about their post-financing ownership. The bottom line: Startup CEOs/Founders need to do the projected capitalization table math on an as-converted, post-money basis from Day 1, before issuing any notes and modeling various possible future scenarios.

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7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

According to Yahoo Finance , less than a third of crowdfunding campaigns currently reach their goals, and the rest have to return anything they do collect. Professional investors like to keep tight control of capitalization tables and all stock owners, to facilitate their own payoff when a sale, merger, or public stock offering is held.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

I can tell you that, among other problems, any uncertainty in the capitalization table when the company is acquired will be resolved squarely and unequivocally in favor of the buyer. Cooley Report Reviews Second Quarter Venture Capital Financing Trends. Recent Posts. I have moved my startup practice to Cooley from Dorsey.

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Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist

Feld Thoughts

The Capitalization Table. How Venture Capital Funds Work. Issues at Different Financing States. Overview of the Term Sheet. Economic Terms of the Term Sheet. Control Terms of the Term Sheet. Other Terms of the Term Sheet. Negotiation Tactics. Raising Money the Right Way. Letters of Intent – The Other Term Sheet.