Should Startups Share Their Cap Table with Potential Investors?

Posted by Shifa1 on Tuesday August 13, 2024 @01:34PM
from the self-post dept.

As founders, how transparent should we be with our cap table when engaging with investors? Are there benefits to full disclosure, or could it potentially create unnecessary complications? What’s your approach, and how has it impacted your fundraising journey?"

( 3 comments | on HN )

Re:Should Startups Share Their Cap Table with Potential Inve... by dustingetz on Tuesday August 13, 2024 @02:00PM (#41237770)

give a verbal top line (x raised from A, B headliners and misc angels) and save the details (excel doc, price and timing, option pools etc ) for post offer diligence, but what complications do you fear exactly? Sharing past price is your call, try to delay

[ Parent | on HN ]

Re:Should Startups Share Their Cap Table with Potential Inve... by rchaudhary on Tuesday August 13, 2024 @07:07PM (#41240780)

Investors would want to see your cap table during the due diligence process as they want to make sure that they are not investing in a company with messed up cap table.

[ Parent | on HN ]

Re:Should Startups Share Their Cap Table with Potential Inve... by Irfan2 on Friday August 16, 2024 @04:46AM (#41264501)

When engaging with investors, transparency with your cap table is crucial. Full disclosure, including tools like Eqvista, can build trust and demonstrate professionalism, showcasing a well-managed equity structure.

[ Parent | on HN ]