The Situation
Whether it’s a Unicorn founder navigating a complex reorganization or a growth-stage startup reshuffling its cap table for a new financing round, cap table challenges can make or break a deal. One client needed to step back from operational roles, adjust shareholder rights, and maintain strategic influence. Another faced a high-stakes financing round involving capital decreases and increases, a potential down round, and heavy discounts for CLA lenders.
Our Approach
In the fast-paced world of startups and venture capital, a well-structured cap table isn’t just a nice-to-have—it’s mission-critical. Here’s why:
💡 Attracts Investors: A clean, transparent cap table builds investor confidence and speeds up due diligence.
📊 Optimizes Ownership: Ensures founders, key team members, and investors have the right equity balance to stay motivated.
🔄 Supports Growth: Restructuring can make room for new funding rounds without unnecessary dilution or legal friction.
🏁 Facilitates Exits: Whether it’s an acquisition or IPO, a streamlined cap table simplifies negotiations and maximizes valuation.
🧩 Handles Complex Scenarios: In situations like down rounds or stock sales, a clear ownership structure helps manage changes in valuation, stock options, and share transactions.
The Impact
For the Unicorn founder, we provided strategic input on all financing documents, helping them waive specific rights under the shareholder agreement while securing new deal-driven rights. For the growth-stage startup, we advised on capital structure, navigating shareholder dynamics, and optimizing terms to create an investment friendly cap table.
The founder smoothly transitioned from operational roles without losing strategic influence, with a deal structure that aligned with the company’s future. The startup closed its financing round seamlessly, with a cleaner, growth-ready cap table that attracted new investors.
"Alfred transformed a complicated cap table into a streamlined structure. Their legal and strategic advice was key to successfully closing the round." - CFO, Growth-Stage Startup
The Team
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