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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Toxic Cap Table
Description: Toxic Cap Table Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors funding a startup should review the cap table to determine the health of the startup. Here are signs of a toxic cap table. The founder owns the majority of shares and the cofounders own very little. Without incentive, the co-founders will not give their best effort. The founder owns very little of the company. Similarly, the founder will not find enough incentive to see the business through to exit. Too much equity has been given away...