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A Power Map Under Stress
Founders experience the cap table as a record of trust.
Investors experience it as a risk surface.
Your cap table isn’t static.
It’s a map of how decisions propagate when the terrain shifts.
Investors read it the way engineers read load paths:
Where does pressure concentrate?
What fails first?
What holds longer than expected?
A “fine” cap table at rest can behave very differently under strain.
The 4 Questions Investors Are Really Answering
Early-stage investors don’t look at the cap table once.
They look at it through four different lenses, each answering a different risk question
🧭 Governance Risk
Can this company still make decisions efficiently?
They’re scanning for:
Too many small holders with opinions
Informal veto power (“we always check with X”)
Protective provisions that stack unexpectedly
The fear isn’t conflict.
It’s decision paralysis at the worst moment.
🎯 Incentive Drift
Will everyone still want the same outcome in two years?
Investors look for:
Angels who are already “up big” on paper
Advisors whose equity is large relative to the contribution
Early investors whose timelines don’t match venture-scale outcomes
Misaligned incentives don’t explode.
They pull subtly, in opposite directions.
🪜 Founder Authority
Is the founder still structurally empowered to lead?
Not ego. Not control for control’s sake.
Investors want to know:
Can the founder make hard calls?
Can they raise again without negotiating their own role?
Are they leading or managing around constraints?
A diluted founder can still be powerful.
A constrained founder cannot.
⏳ Future Financing Friction
How hard will the next round be to close?
Investors simulate:
What a new lead will object to
Which terms will need exceptions
How long will explanations take
If the cap table already needs a narrative, future investors will demand a discount.
Tactical Moves
Not cleanup. Preparation.
Draw the pressure map.
Ask: When things get tight, who pushes back? Who stays aligned?Explain the tradeoffs explicitly.
Investors trust founders who can say, “This was suboptimal, and here’s why we accepted it.”Know the future objections.
If you were leading the next round, what would worry you?Reduce surface area where possible.
Fewer special cases = faster decisions later.Own the story
A cap table without a narrative invites someone else to write one.
Funding Corner
A weekly section where I share funding opportunities (grants, loans, programs) and how to approach them without the overwhelm.
1) SBA 504 Loan Program
💸 Amount: Long-term, fixed-rate financing (project-based; varies by deal)
👤 Best for: Established small businesses buying real estate, equipment, or refinancing qualifying debt
📅 When: Tues, Feb 10 | 10:00–11:00 AM (live session)
🔗 Learn More: Through SW Texas SBDCs
👉 Tip: This is growth capital, not survival capital. Come ready to discuss assets, cash flow, and how long-term debt fits your next 5–10 years, not just this year.
2) The UPS Store® Small Biz Challenge
💸 Amount: Share of $35,000 in prizes + national exposure
👤 Best for: Small businesses and startups looking for non-dilutive capital and visibility
📅 Deadline: Feb 22 (Phase 1 entry window)
🔗 Apply: inc.com/theupsstore/small-biz-challenge
👉 Tip: Judges reward clarity, not scale. Be specific about what makes your business work and how the prize money would create momentum, not just growth.
3) Intuit QuickBooks x Mailchimp Small Business Hero Program
💸 Amount: $20,000 + tools and exposure
👤 Best for: Businesses with a strong customer or community impact story
📅 Deadline: Rolling / phased cycles (check site for current window)
🔗 Learn more / Nominate: https://quickbooks.intuit.com/r/small-business-heroes/
👉 Tip: This isn’t just about revenue, it’s about impact. Frame your application around who you help and why your business matters.
Community Note
Every founder inherits their cap table twice:
Once they create it.
When they explain it.
The strongest founders don’t defend their table.
They demonstrate they understand it.
If you’ve navigated a tricky cap table moment, share it.
Your experience is someone else’s blind spot.
👉 Reply with “MAP” and I’ll send you our Cap Table Power & Pressure Worksheet, the same framework investors use, translated for founders.
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