Investor legacy (was: Know your needs)
Suggested topics & further reading:
Who are current investors in your company, if any? You can mention them by (company) name and by type of deal (e.g. seed capital, (convertible) loan, angel investor). This can also give you some ‘social proof’ to new investors.
A cap table shows who current shareholders are and what percentage of the company they own. This is relevant information to new investors, for example to see that founders still have a significant enough amount of shares to keep being motivated and to understand what other investors have a say in the direction of the company.
- Capitalization Table
- How Startup Options (and Ownership) Works
- How to Read and Understand a Cap Table
- Cap Table and Exit Waterfall Template
If your startup raised funding from investors before, including equity, debt or convertible debt, you’ve had to make financial agreements, e.g. on:
- Interest rate and repayment agreement
- Discount rate and valuation cap (for convertible)
You can summarize the key financial agreements that you made in the past, as this helps new investors to understand the ‘financial legacy’.