Founder Workshop: "Cap Table Modeling and Term Sheet Construction"
Each quarter, Venture Mechanics offers a rotating series of Founder Workshops on specific topics that every startup team needs to master. These are typically 3-4 hour evening sessions given by the best of our mentors. While the workshops are intended to be taken sequentially they can be taken out of order.
Companies in the Venture Mechanics incubator are entitled to an unlimited free buffet of these workshops during their term. The workshops are also open to startups that aren't in the incubator, at the regular tuition price. Dinner is included, and parking is always free.
If you would like to virtually attend this event. Livestream tickets are available and can be purchased HERE.
More About This Workshop:
Workshop Description:
Navigating the complexities of equity distribution is crucial for any startup aiming for sustainable growth and investment success. This intensive workshop on Cap Table Modeling for Startups offers a deep dive into the principles and practical applications of managing your startup’s capitalization table. Understanding how to model and maintain a cap table is vital for founders to ensure fair equity distribution, attract investors, and make informed strategic decisions.
Join us to learn from seasoned venture capitalists and financial experts who will guide you through the intricacies of cap table dynamics, investor relations, and equity management. This workshop combines interactive lectures, real-world case studies, and hands-on modeling exercises to ensure participants gain comprehensive and actionable insights.
Workshop Objectives:
Understand the fundamentals of cap tables and their importance in startup finance.
Learn how to create and manage a cap table that reflects your startup’s equity structure accurately.
Explore the impact of different funding rounds on your cap table.
Gain insights into dilution, stock options, and convertible notes.
Develop strategies to maintain a balanced cap table while negotiating with investors.
Utilize cap table modeling tools and software effectively.
Key Topics:
Introduction to Cap Tables
Definition and significance of a cap table.
Key components: founder shares, investor shares, options, and convertible securities.
Creating a Cap Table
Step-by-step guide to building an initial cap table.
Common mistakes to avoid in early-stage cap table creation.
Funding Rounds and Equity Dilution
Understanding pre-money and post-money valuations.
Impact of seed, series A, and subsequent funding rounds on the cap table.
Dilution management and strategies for founders.
Stock Options and Convertible Notes
Structuring employee stock option plans (ESOPs).
Convertible notes and SAFEs: how they convert and affect your cap table.
Cap Table Management Tools
Overview of popular cap table management software.
Hands-on exercises using real-world tools to manage and update cap tables.
Investor Relations and Negotiations
Best practices for communicating with investors about equity.
Strategies for negotiating favorable terms while protecting founder equity.
Instructors:
Bill Kearns, Founder Ursa Advisory
Adam Derry, Senior Associate, Silicon Legal Strategy
Details:
One ticket entitles you to bring up to two founders from your startup.
If there is sufficient time, the instructors will solicit founders in the audience to ask about their startups' specific branding and/or customer acquisition strategies, and get some ideation going together with the other founders and mentors in the room.
Free and convenient parking is always available at Venture Mechanics. The doors open at 5pm, and the course begins at 5:30pm. A light dinner will be served at around 6:45pm.