Startup Valuation Roadmaps

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors setting a valuation should review the cap table to understand how future rounds will cause dilution.

A cap table tracks each shareholder and the amount of equity they own including the pre and post-money valuations.

Key factors to consider are the following:

Option pools -- what has been set up or will be set up.

Liquidation preferences -- does any other investor have a right to a liquidation preference that gives them a portion of the proceeds before other investors?

Future rounds of funding -- how many more rounds of funding will be required?

Most startups will need additional funding so some dilution is to be expected.

Map out the proposed follow-on rounds of funding to see the effects of dilution on the investors' equity position.

Consider the impact of venture capital on the cap table which can have a major impact on earlier investors.

It’s often the case the startup must raise additional capital beyond the plan, due to unforeseen circumstances so any proposal shows the best-case scenario.

By mapping the cap table from the current investment to the exit, the investor can understand their position at an exit and what return to expect.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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On this episode of Investor Connect, Hall welcomes Khalil Shalabi, Founder and Chief Executive Officer at Wyth. 

Headquartered in Lemont, Illinois, and founded in 2018, Wyth is a new carpool and rideshare app and service exclusively for university students. It is a closed-loop system, whereby drivers and riders are from the university community (i.e.. students, faculty, or staff) making it a safer option than current services.

Wyth is a mobility solution for rides around college campuses (rideshare services for housing, campus, athletic events, and business district) and long-distance solutions during holidays and breaks (carpool services for students going home, school, or other places). Product-market fit is resounding with twenty-one (21) major universities interested. The market analysis of usage of “rides around campus” from 2 universities is UCLA  with 11,000 rides/week and the University of Alabama with 40,000 rides/week. Wyth is a safer alternative to Uber/Lyft due to its closed-loop system whereby all users are vetted as part of the university community. The market potential for rideshare is $9B and carpool $4B. The university community is fully vested in saving the environment and their carpool solution can save the planet 5-10 billion pounds of CO2 emissions.

Khalil is an entrepreneur of over 40 years in multiple business sectors. He has started over 10 businesses and graduated from the University of Illinois at Chicago with a degree in BioChemistry. Khalil has 4 daughters who graduated from major universities and like millions of parents had to pick them up and drop them at their universities hence why he started Wyth.   

He is interested in civic engagement and socially responsible corporate practices.

Khalil discusses his background, his main reason for starting Wyth, challenges faced in this industry, potential rewards, and how Wyth differs from competitors.

Visit Wyth at www.Gowyth.com, on LinkedIn at www.linkedin.com/company/seatus-technologies-llc/, and on Twitter at www.twitter.com/Gowyth. 

Reach out to Khalil at khalil.shalabi@gowyth.com, and on LinkedIn at www.linkedin.com/in/khalil-shalabi-ba7149149.  

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.