nucleate25

What is the Balance Sheet Equation

• A=L-S/E

• L=S/E+A

• A=L+S/E

• S/E-A=L

Is R&D an asset?

• Yes

• No

When can you account for a sale?

• At order
• At shipping
• After the return period
• At every point

What is preferred stock?

• Shares that give you voting power
• Shares that grant you priority at liquidation
• Shares that grant you priority at new investments
• Shares that look nice

Mark everything a cap table helps you to do

• Find a new investor's equity %
• Find the pre-money valuation of your firm
• See negotiation terms
• Plan for future investment

What is a triggering event?

• The point at which convertible debt converts into equity
• Anything on right-wing Youtube
• When equity dilutes an option pool
• An angel round

How do we bring in new investment?

• Sell some shares
• Issue new shares

What is a broken cap table?

• One that lacks one or more rounds of investments
• One that does not include the # of shares
• One where founders' equity is too low
• One where investors' equity is too low

In a negotiation, do you push for economic or control terms?

• Economic
• Control
• It depends on what your goals for the company are

What is founder lockup?

• Preventing the founder from going to a different company
• Preventing the founder from selling their shares too early
• Preventing the founder from voting on new acquisitions
• Preventing the founder from issuing new shares