On: How to Evaluate Startup Offers

[danrocks]

I don't think anybody knew the cap table for those companies. To be more precise: one of them didn't even have a cap table, the other was a secret between the lead investor and the original owner (an incubator). Needless to say nothing was disclosed to engineers, or any one of them for that matter. Even in this state, both companies raised a shitton of money.

[leetrout → danrocks]

This is what had been surprising to me in my experiences... first few startups the cap table was shared info but no specifics (investor pool 33%, employee pool 7%, etc) so at least you knew the rough outlay.

Then one recent startup was championing transparent salaries but wouldnt share anything about the cap table which seemed odd to me.

My current company the CEO answers questions about the stock outlay but not specifics but also doesnt claim to be transparent.

I just assumed from my earliest experiences most small companies were happy to explain the cap table and walk folks through dilution events.

[bingohbangoh → leetrout]

Cap tables can change very quickly too. Even if you know at the beginning, you’re not privy to any changes later on.

[leetrout → bingohbangoh]

Sure. More the reason to have a rough representation that is public in a transparent company.

Cant make good decisions without full information.

[sokoloff → danrocks]

> To be more precise: one of them didn't even have a cap table

A cap table is a representation of ownership. Saying a company doesn’t have one is like saying I don’t have a height.

[danrocks → sokoloff]

So you’re infinitely short? Joking.

What I meant is that the cap table was not disclosed and changed so often that nobody really knew what it was at a given moment in time.