AI-Powered Product C...ย โขย 6m
How a Broken Cap Table Turns Founders Into Employees of Their Own Company? Founded in 2009, Quid raised over $108M in funding and reached a peak valuation of $300M+ by 2016. Yet when the company was acquired by Netbase in 2020, founder and CEO Bob Goodson had been diluted down to a minority stakeholder with limited control. Why? A cap table that gradually eroded founder ownership through: --> Aggressive liquidation preferences in early rounds --> Multiple bridge rounds with punitive terms --> No founder refresh grants despite 10+ years building the company --> Convertible notes that converted at unfavorable terms According to AngelList data, the average founder ownership at exit is just 17%. More concerning: PitchBook reports that for companies raising 3+ rounds, founder ownership drops to an average of 11% by acquisition. As Mark Suster of Upfront Ventures warns: "๐๐ฉ๐ฆ ๐ด๐ต๐ณ๐ถ๐ค๐ต๐ถ๐ณ๐ฆ ๐ฐ๐ง ๐บ๐ฐ๐ถ๐ณ ๐ค๐ข๐ฑ ๐ต๐ข๐ฃ๐ญ๐ฆ ๐ช๐ด ๐ข๐ด ๐ช๐ฎ๐ฑ๐ฐ๐ณ๐ต๐ข๐ฏ๐ต ๐ข๐ด ๐ต๐ฉ๐ฆ ๐ท๐ข๐ญ๐ถ๐ข๐ต๐ช๐ฐ๐ฏ. ๐๐ฆ๐ณ๐ฎ๐ด ๐ฎ๐ข๐ต๐ต๐ฆ๐ณ ๐ฎ๐ฐ๐ณ๐ฆ ๐ต๐ฉ๐ข๐ฏ ๐ฎ๐ฐ๐ด๐ต ๐ง๐ฐ๐ถ๐ฏ๐ฅ๐ฆ๐ณ๐ด ๐ณ๐ฆ๐ข๐ญ๐ช๐ป๐ฆ." Four critical areas where founders lose control: --> Sub-10% equity splits between co-founders (major investor red flag) --> Missing or inadequate vesting schedules --> Too many small investors creating cap table complexity Your cap table isn't just paperwork, it's the difference between building generational wealth and becoming just another employee. What's your equity retention strategy for the next round?
Assisting Early-Stag...ย โขย 6m
The Hidden Power of the Cap Table! I have seen many entreprenueurs struggling with their cap table just before the funding round and at that point, its not easy to cleanup the mess! Cap Table is the DNA of your startupโs ownership and if youโre not
See MoreUnfiltered and real ...ย โขย 7m
Founders: Protect your equity. VCs have a playbook for valuation that most founders donโt see. Here's a side-by-side look at how they calculate deals differently from you: ๐๐๐ฅ๐ฎ๐๐ญ๐ข๐จ๐ง ๐๐๐ฅ๐๐ฎ๐ฅ๐๐ญ๐ข๐จ๐ง Founder: $3M pre-money โ $4M po
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OpenAIย โขย 1y
Below attached is, Famous Founders and their Ownership during their respective IPOs v/s VC Ownerships: Investors have standards in mind when it comes to what your cap table should look like. The founders should collectively own more than 50% of the
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Medialย โขย 9m
Flipkart sold for $16 billion, but the founders got almost nothing. After looking at 100+ startup deals, I found some toxic terms that hurt founders: 1. Liquidation Preferences: Investors get their money back first. If the sale price is low, founde
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OpenAIย โขย 10m
Here is a list of notable tech founders, their ownership stakes in their respective companies, and the current estimated worth of those companies: Notable Founders and Their Company Valuations Elon Musk - Ownership: 42% of SpaceX - Company Valu
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