Startup Funding Espresso -- What Investors Want to See in a Cap Table
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors review the cap table as part of their diligence process.\xa0 They look for the following in the cap table: The founders have a large enough stake that keeps them motivated. Those who have very little ownership will most likely not stay with it for the long haul. The right people need to have enough equity to make the business successful. The founders should have 40-50% - or greater - after the Series A. There shouldn\u2019t be too many people on the cap table in early-stage companies.\xa0\xa0 There should be no shell companies. For those who want to use crowdfunding, make sure you create a special purpose vehicle for gathering them into one place on the cap table. Show the cap table in its fully-diluted form so as to include options, warrants, and restricted stock. There should not be too much dilution from the investors coming in especially in the early stages. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of