Venture capital deals often feel complex because they are expressed through dozens of separate terms: valuation, liquidation preferences, board seats, veto rights, option pools, information rights. Each appears to address a...
Category: Shareholder Agreements
This post is a technical companion to What Happens to Your Cap Table in a Down Round. Its purpose is not to explain why down rounds matter, but to show how they are implemented in practice and how specific provisions reshape...
A down round does not simply reset valuation. It rewrites the cap table. Founders often think of a down round as a temporary setback—a lower price that can be recovered with growth. Investors view it differently. A down...
This post is a numerical companion to Modeling Dilution Across Multiple Rounds. Its purpose is not theory or judgment, but demonstration. The example below walks through a realistic US / Canadian venture-backed path from...
Dilution is rarely the result of a single financing. It compounds across rounds, option grants, pool refreshes, and structural decisions made years apart. Founders often track dilution as a snapshot—before the round, after...
Restricted shares vesting determines what founders actually own, not what appears on the capitalization table. In the prior post, we examined how share classes and economic rights define payout priority and control. This post...
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...