Venture Capital

Venture economics are driven by outsized returns on a small number of assets (the power law), mitigated down-side protection for investors, and severe dilution for founders. We document the math.

Cap Table Mechanics

Pre-money vs Post-money, option pools, and share prices.

Liquidation Preferences

Participating vs Non-Participating, and multiples.

Dilution Modeling

How subsequent rounds compress early ownership.

Anti-Dilution Provisions

Broad-based vs Narrow-based weighted average ratchets.