A cap table is often dismissed as a spreadsheet or an administrative artifact reviewed during diligence. In practice, it is far more consequential. It is the single source of truth for your company’s ownership and the...
Category: Business Formation & Startup
In our previous discussions, we treated the term sheet as your company’s blueprint and SAFEs or convertible notes as instruments of deferred pricing. We are now at the stage where those abstract promises land on your...
In our previous discussions, we established that rights—not labels—determine economic and control outcomes and that ownership reflected on a spreadsheet is often an illusion” until it is earned through vesting. To...
Most founders understand their ownership in percentage terms. Far fewer understand how that ownership actually converts into cash at exit. Liquidation preferences sit quietly in term sheets, often dismissed as “standard”...
In the early stages of building your company, you likely viewed seed-stage financing as a series of necessary but isolated administrative hurdles. Whether you utilized Simple Agreements for Future Equity (SAFEs) or...
Earlier posts in this series examined the structural design of Convertible Notes and SAFEs, the high-stakes trade-offs of pricing mechanisms like caps and discounts, and the compounding risks of stacking multiple instruments...
Note: This is an advanced, optional extension of the “Convertible Notes & SAFEs (The Truth)” series. It is intended for founders and operators who wish to see the conceptual risks discussed in previous posts...