Publications
Publications
- March 2024
- HBS Case Collection
ELCA's Series A Cap Table Exercise (Instructor Version)
By: Raymond Kluender and Anke Becker
Abstract
In ELCA, the company must decide between two term sheets: one put forth by STV and one put forth by ESV.
This exercise is an analysis of the implications of these two term sheets on the ownership structure and the payouts of common and preferred shareholders in case of an exit. An analysis of the other terms and provisions, such as those regarding control rights or vesting, are not explored in this exercise.
For an additional overview of common terms of venture capital investment structures, please see A Note on Private Equity Securities (200-027) and Financing New Ventures (811-093).
This exercise is an analysis of the implications of these two term sheets on the ownership structure and the payouts of common and preferred shareholders in case of an exit. An analysis of the other terms and provisions, such as those regarding control rights or vesting, are not explored in this exercise.
For an additional overview of common terms of venture capital investment structures, please see A Note on Private Equity Securities (200-027) and Financing New Ventures (811-093).
Keywords
Citation
Kluender, Raymond, and Anke Becker. "ELCA's Series A Cap Table Exercise (Instructor Version)." Harvard Business School Spreadsheet Supplement 824-712, March 2024.