September 27, 2007

Launch Magazine: Must-Read Article on Cap. Tables

Grow Utah Ventures, an early-stage venture organization here in Utah, released a new regional entrepreneurial magazine about a year ago called Launch Magazine. This magazine is different than most magazines in that it focuses on the very early-stage entrepreneur.

The latest issue features an article on Cap Tables that every entrepreneur should read. Brent Hawkins, an entrepreneur-friendly lawyer (and good friend of mine), writes an excellent article on the nuts and bolts of a capitalization table.

It’s been my experience that most people that are trying to raise money are clueless when it comes to the cap table. I’m no expert, but I was lucky to be able to learn the foundation of cap tables in my Financing New Ventures class at BYU (taught by adjunct Professor Greg Peterson — amazing class).

Make sure you give it a read and you’ll understand why it’s so important to know the details about your cap table before you ever approach an investor.