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What are the cap table red flags for VCs?

What are the cap table red flags for VCs?

FromProdcricle with Mudassir Mustafa


What are the cap table red flags for VCs?

FromProdcricle with Mudassir Mustafa

ratings:
Length:
55 minutes
Released:
Mar 27, 2024
Format:
Podcast episode

Description

SummaryConfused about "cap tables" and fundraising? This episode is your guide! We explain what a cap table is and why it's important for startups. Plus, VC expert Jeff Crusey reveals the warning signs investors look for in a cap table.  Learn how to avoid these red flags and build a cap table that sets your startup up for success!  This episode is perfect for first-time founders and anyone interested in venture capital.Takeaways1. Background in the industry is important for VC investors in deep tech2. Deep tech startups often remain in stealth mode to retire engineering risk3. Traction in deep tech varies depending on the business model and industry4. Valuation of deep tech companies is influenced by fund size and risk profile5. Being the first money in can provide an edge for VC investors6. Founder chemistry is crucial for the success of a startup7. Post-money SAFEs have drawbacks, including dilution and lack of due diligence8. Venture studios and accelerators can vary in their effectiveness and support9. YC has been popularized but may have some hype surrounding it10. The best and worst pitches can vary in terms of insight and executionCahpters00:00 Trailer‍01:40 Introduction‍06:02 Question Unclear‍07:24 What Is Investment Thesis of 7%‍09:41 Why deep tech startup stay in stealth mode / How VC's evaluate of deep tech ideas‍14:10 How VC's track good pitch deck. (First time founder need to listen)‍15:32 Understand the though process of VC's (Must listen if you want funding)‍28:10 Failure rate in deep tech catagoery according to VC‍29:37 Difficulties in building humanite and biotech products‍31:37 How much management team and founders expertise are required‍33:23 Jeff favourate pitch deck slides‍36:07 Cons of Post-Money SAFE‍37:25 Opinion on Venture Studios and Accelerators‍42:10 Best and Worst Pitches‍47:00 Raising money is success metrics‍49:28 Cap Table Red Flags‍52:08 Did VC's providing clear feedback to founders‍53:25 Ritual Time‍54:39 ConclusionConnect with Mudassir ? YouTube Channel - @prodcircleHQ ? Twitter - https://twitter.com/ProdcircleHQ? Instagram - https://instagram.com/prodcirclehq? Website - https://prodcircle.com/? Linkedin - https://www.linkedin.com/in/mudassir-mustafa/
Released:
Mar 27, 2024
Format:
Podcast episode

Titles in the series (46)

Each week, I invite entrepreneurs, venture capitalists & industry professionals to share their experiences and insights on the journey to building a successful startup.I try to explore the human side of the business, their successes, failures, stories, we talk about latest trends, and dive deep into whatever is going on in the startup world.