3 ms·
Probably a bit late at this stage but it's important to make sure that the seed investors don't own too large a percentage of the company, especially if they ha
by ig1 13y ago
Probably a bit late at this stage but it's important to make sure that the seed investors don't own too large a percentage of the company, especially if they have follow-on rights. A messy cap table can kill an otherwise good investment.
Series A investors might also want to see your seed deck and see if you managed to achieve what you told your seed investors you'd achieve.
In terms of specifics it depends very much on the nature of the business. The expectations of where an enterprise startup vs a social network vs a mobile game are very different. The best thing you can do is benchmark with similar (non-competitive businesses).
- SkyMarshal 13y agoVery good points, thanks. I know the finance co-founder is on top of ensuring a clean cap table, as a messy one, especially with equity owners no longer with the company, can definitely trigger a "decline". And good point about the seed deck too, will make sure to pass that on. I'd like to think everyone is aware of that, but I also suspect we may need to pivot on the way to product market fit.