Chaos in the Cap Table

June 29th, 2011 → 2:56 pm @

I’ve just been working on the capitalisation table for a startup company.  We’re preparing a funding plan to take the company right through to IPO or trade sale, and need to capture all the commitments made now, or likely to be made, to fund the business.

That sounds pretty simple, but it’s amazing how quickly a cap table can turn into a nightmare… and high-growth companies are particularly susceptible because it’s all happening real fast. 

One day you’re sitting with a shiny new founder who owns 100% of his company, say 10000 shares, all in common stock.  The next thing you find is that you’re burrowing through a sea of obligations.  Here’s what can happen: (more…)

Angel funding