DiscoverProdcircle with Mudassir MustafaWhat are the cap table red flags for VCs?
What are the cap table red flags for VCs?

What are the cap table red flags for VCs?

Update: 2024-03-27
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Summary

Confused 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.

Takeaways

1. Background in the industry is important for VC investors in deep tech
2. Deep tech startups often remain in stealth mode to retire engineering risk
3. Traction in deep tech varies depending on the business model and industry
4. Valuation of deep tech companies is influenced by fund size and risk profile
5. Being the first money in can provide an edge for VC investors
6. Founder chemistry is crucial for the success of a startup
7. Post-money SAFEs have drawbacks, including dilution and lack of due diligence
8. Venture studios and accelerators can vary in their effectiveness and support
9. YC has been popularized but may have some hype surrounding it
10. The best and worst pitches can vary in terms of insight and execution

Cahpters

00:00 Trailer‍
01:40 Introduction‍
06:02 Question Unclear‍
07:24 What Is Investment Thesis of 7%
09:41 Why deep tech startup stay in stealth mode / How VC's evaluate of deep tech ideas‍
14:10 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 VC
29:37 Difficulties in building humanite and biotech products
31:37 How much management team and founders expertise are required
33:23 Jeff favourate pitch deck slides
36:07 Cons of Post-Money SAFE
37:25 Opinion on Venture Studios and Accelerators
42:10 Best and Worst Pitches
47:00 Raising money is success metrics
49:28 Cap Table Red Flag
52:08 Did VC's providing clear feedback to founders‍
53:25 Ritual Time‍
54:39 Conclusion

Connect 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/

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What are the cap table red flags for VCs?

What are the cap table red flags for VCs?

Mudassir Mustafa