Remove Capitalization Table Remove Finance Remove Management
article thumbnail

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.

article thumbnail

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. The infrastructure to manage thousands of shareholders in a single company, called the stock market for public companies, is missing. by either angel groups or VCs alone.

Equity 180
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Equity for Consultants – Keep it Simple!

www.mattbartus.com

People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. 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.

Equity 40
article thumbnail

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

Some finance guy said "12k a month minimum" and someone replied "I must be living in abject poverty" and its true. If I grant equity to a outsourced developer for future services after his initial contract with me is delivered on, where on the capitalization table do I place him? Founder or employee?

Equity 40
article thumbnail

Cap Table Explained — What is it and How to Maintain it for Investors

Up and Running

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? A cap table is also known as the capitalization table.

Cap Table 112
article thumbnail

Startup Equity For Employees

www.payne.org

Also, most companies try to keep all employees on the same terms, and there are good management reasons to do that. At a minimum, do your own personal finance homework so you know how much salary you need to live and not spend your savings. The other factor is the "cap table" (capitalization table, or summary of who owns what stock).

Equity 56
article thumbnail

Episode 8: Charlie’s Bcast Email, Startup Incubators, and 10 Reasons Why Startups Fail | The Bcast

Up and Running

I’ve done this with lots of founders and we usually glaringly see skills missing like financial management or HR managements or digital marketing or whatever those things are. They never worked with the startup who had needed to raise multiple rounds of financing.