OpenUp: Interplay Between Cap Table, Valuation, and Financial Planning

Rajesh Gopi

Organizers

Rajesh Gopi

Rajesh is passionate about building tech to solve founder challenges around managing, modeling, and preserving equity. Despite previous startup exits, understanding the nuances of impact to equity from investment terms was always a challenge for Rajesh. He started TWO12 to solve this problem for founders with a suite of related equity management applications, including cap table, fundraise valuation, and financial modeling. In addition, he mentors founders at multiple accelerators and runs a pre-accelerator program. Rajesh holds an MBA from UT Austin.

Other Organizers

Tara Spalding
Tara Spalding
Website
https://boomstartup.com/shop/mentor-session-tara-spalding/

Tara Spalding Managing Director, BoomStartup Accelerator Tara Spalding is Managing Director of BoomStartup Accelerator. BoomStartup is an accelerator and mentorship-driven angel-stage investment program for startups. It operates as an online technology-driven accelerator, providing entrepreneurs a custom business plan including business maturity guidance, investment preparation, and capital structuring relevant to growth, and investment strategies as well as a curated marketplace for services. Tara is also the founder of Hen House Ventures, an early stage incubator that helps tech companies rapidly scale when entering massive markets, and is also on the board of trustees for VentureCapital.org. Tara is the recipient of the 2020 Utah Business 30 Women to Watch award. Tara began her high-tech career in Silicon Valley when she taught herself to code software and became the first employee, and eventually VP of marketing at industry leader, SugarCRM. Her Silicon Valley experience included roles as CMO at GroundWork Open Source, VP marketing at Magnet Systems, and co-founder and CPO at BenchPick. Tara received her bachelors from University of Colorado, Boulder.

Category

Location

On-demand Recording

Cap table tracks equity distribution across shareholders. However, startups raise on SAFEs, NOTEs, and potentially have warrants sitting on the sideline pending conversion. These instruments can have liquidation preferences, pro-rata, and anti-dilution clauses. Additionally, a priced round will likely require a pre-money option pool with complex terms around them.

Valuation determines the value of shareholder equity, be it preferred, warrant, common, or option holders. Depending on the stage and industry, there are numerous ways to arrive at a company valuation. A startup can punt a priced round with a convertible instrument that uses a valuation cap, discount, and interest. The terms in these instruments can further impact the true valuation of the startup.

Financial planning is simply a projection for how the startup’s P&L, Cash Flow, and Balance Sheet will look over the next several years. These projections give a lot of clarity regarding revenue profile, top-middle-bottom funnel, growth planning, the free cash flow, when the company needs to raise next, and what the valuation might be at the time of future raising.

WHAT TO EXPECT:
Rajesh Gopi will examine the interplay between cap table, valuation, and financial planning. A founder’s mastery of these concepts for their startup will best position them for optimum success for all their shareholders.

FORMAT:
This is a presentation with questions answered by Rajesh throughout. 

FEE:
$0

DATE / TIME:
March 15, 2022 from 9am – 10am MST

LOCATION: 
Hosted virtually through Zoom

Meet The Experts:

Rajesh Gopi, Co-founder of TWO12 Inc

Rajesh is passionate about building tech to solve founder challenges around managing, modeling, and preserving equity. Despite previous startup exits, understanding the nuances of impact to equity from investment terms was always a challenge for Rajesh. He started TWO12 to solve this problem for founders with a suite of related equity management applications, including cap table, fundraise valuation, and financial modeling. In addition, he mentors founders at multiple accelerators and runs a pre-accelerator program. Rajesh holds an MBA from UT Austin.

Tara Spalding, MD of BoomStartup

will be moderating the webinar and encouraging participants to ask questions to Rajesh.