Is The Cap Product Bilinear?

As an investor you see a team and product you like but they have a cap table muddied by non-value-add early investors.  How do you fix that?

  • Are you tempted just to pass, or do you reach into your quiver and recap with stock grants, options, etc.?

  • Answer:

    I think they need to fix that or they won't get any investment or at least any investment that is on terms that are "fair" assuming that had been fixed. I usually steer them to one of the many good early stage lawyers I know.

Jeff McConnell at Quora Visit the source

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