Nutter Hosts TCN Class for Startups on Business FinancingPrint PDF
Nutter served as host of The Capital Network’s (TCN) “Build a Cap Table and Understand the Dilution Impact of Early-Stage Investment” program on March 1. Jeremy Halpern, a partner and the Director of Business Development for Nutter’s Emerging Companies Group, led the program, which focused on helping entrepreneurs gain a clear understanding of the impact of proposed financing before they talk to investors. Jeremy explained terms and showed attendees the exact numerical consequences of these difficult negotiating points: pre-money, fully diluted equity, option pool, percentage ownership, weighted average anti-dilution, full ratchet anti-dilution, and per share price. Participants also learned how to build their own capitalization table and how to use this tool to understand the dilutive impact of various investment decisions, such as stock options, restricted stock, early stage angel or venture capital investment, down-rounds, and anti-dilution provisions.