Capitalization Tables Demystified

Terms like “warrants, waterfalls and preferences” can be confusing and intimidating when attempting to understand a capitalization table (aka cap table); it is no wonder we are often asked for a simple way to understand them! This article will give a brief overview of why cap tables are important and introduce a simple model to use early in the due diligence process.

Compensating the Managing Member in Investment Syndicates

Imagine you are the manager of a seed stage investment fund.  Your job is to make money for your investors through selecting and managing a portfolio of private investments. You work hard to find good deals, to negotiate the terms, and to shepherd each deal to exit.  You do this ten, twenty, thirty or more times in your fund, often looking at dozens of deals before making one investment. So how do you get paid?

Recent Posts

Capitalization Tables Demystified

Terms like “warrants, waterfalls and preferences” can be confusing and intimidating when attempting to understand a capitalization table (aka cap tabl...

Read more

Compensating the Managing Member in Investment Syndicates

Imagine you are the manager of a seed stage investment fund.  Your job is to make money for your investors through selecting and managing a portfolio ...

Read more

Raising Capital Simply

When entrepreneurs raise capital through the sale of some type of security, the temptation is to take the money from whoever offers to invest, regardl...

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Simplifying Angel Investing- The Use of Investment Syndicates

Loon Creek helps investors form and administer investment syndicates. This is the first in a series of blog posts based upon our experiences in doing ...

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