Cap Table Concerns

Under OCV’s operating model, founders would receive lower equity ownership percentages compared to traditional ways of founding a startup with two co-founders.

Lower founder ownership is a valid concern for future investors. It tends to be more pronounced in early rounds, and less so in late stages.

Companies may lose potential investor interests because of CapTable concerns. YC will also express concerns. We recognize this as a headwind.

For our model (high risk for OCV and a tremendous amount of work entailed) to work, OCV needs the high ownership. We won’t do a recapitalization, but we are open to a slightly larger options pool than usual.

Focus on growth and grow faster to overcome the objections. In the end, the company’s success will help investors and YC overcome any CapTable concern.