This Startup Has A New App To Make Sure VCs Are ... - Forbes

Cabal is launching a new mobile app to accompany its existing web app. Cabal. Like any venture capitalist, Craft Ventures partner Brian ... BETAThisisaBETAexperience.Youmayopt-outby clickinghereMoreFromForbesJun14,2022,11:10amEDTSolvingClimateChangetheAmericanWay:SaulGriffith’sVisionforanElectricFutureJun14,2022,09:25amEDTStateOfVC2021:BreakingEveryRecordJun8,2022,12:00pmEDTProfitableForFiveYears,CamblyWantsToBeTheNextBigLanguageAppByTeachingEnglishOnlyJun8,2022,10:00amEDTExclusive:Amazon’sConsumerChiefDaveClarkJoinsSupplyChainStartupFlexportAsCEOJun7,2022,12:18pmEDTWith$240MillionFund,TheGeneralPartnershipLooksToRevampValue-AddedVCForFoundersMay31,2022,10:39amEDTWhereDoesAIGoNext?May31,2022,08:57amEDTTheFutureOfFoodStartsInChicagoMay27,2022,07:00amEDTEuropeIsBuildingWorld-ClassTechCompanies–ButCanItCloseTheGapWithTheUS?EditStoryVentureCapitalThisStartupHasANewAppToMakeSureVCsAreBeingHelpfulKenrickCaiForbesStaffIcoverventurecapitalandstartupsfromtheWestCoast.New! Followthisauthortoimproveyourcontentexperience. Gotit!May26,2022,09:00amEDT|SharetoFacebookSharetoTwitterSharetoLinkedin Cabalislaunchinganewmobileapptoaccompanyitsexistingwebapp. Cabal Likeanyventurecapitalist,CraftVenturespartnerBrianMurrayhasbeenfieldingthesamequestionsfromfoundersagainandagain:Canyouintroducemetoaprospectivecustomer?DoyouknowanygoodcandidatesforthispositionI’mlookingtofill?Canyouretweetthisarticleaboutus? Forstartupfounders,itcanbecumbersometofigureoutwhichoftheirdozensorevenhundredsofinvestorsandadviserstoturntoforhelp.“There'sneverbeenagoodwaytoactivatethisgroupofpeople,”Murraysays. SoMurrayandformercolleagueFahimFerdous,aone-timestartupfounder,setouttobuildatooltobridgethefounder-investordisconnect.CalledCabal,theirnewcompanyhasraised$8millioninseedfundingledbyMurray’sfirmCraftandSevenSevenSix,withparticipationfromfundslikeYCombinator,BackstageCapitalandDayOneVentures,aswellasfromangelinvestorsincludingLiJinandMaxMullen.Already,2,600organizationsareusingtheapp,mostofthemcompaniessearchingfortheirbeststakeholdersandadvisersthatcanprovidethegreatesthelp. “Thereceiptswillbethere,”saysAlexisOhanian,founderandpartneratSevenSevenSix.“Therewillbeinstancesofadvisersdoingmoreworkforfoundersthanfolkswhopaidtobeonthecaptableasinvestors.Thattransparency,it’sbadforlazyinvestors,butthat’sfine—it’sgoodforeveryoneelse.” Cabalwasstartedinearly2020byMurrayandFerdous,formercolleaguesatcorporatesocialnetworkingcompanyYammer,asahobbyprojecttheycoulduseforthemselvesandclosecolleagues.TheappquicklyspreadamongSiliconValleyfounders,comingatanopportunetimeinwhichagrowingnumberofsoloinvestorsandafounder-friendlymarkethadledtoaproliferationofshareholdersonstartups’captables.Lastyear,thecompanyparticipatedinstartupacceleratorYCombinatorasanopportunitytonetworkwithhundredsoffoundersfromthegroundup. MOREFROMFORBESADVISORBestTravelInsuranceCompaniesByAmyDaniseEditorBestCovid-19TravelInsurancePlansByAmyDaniseEditor FounderscanuseCabal’swebapplicationtosendperiodicemailupdatestoinvestorsandtotapintothenetworksoftheirinvestors.Forexample,itconnectswithSalesforceorotherCRMtoolssothatafoundercanseewhointheirnetworkhasconnectionsatacertaincompanyinordertoprovideawarmintroductionforaprospectivebusinessdealorpartnership.Theappisavailablethroughafreemiummodel—Cabalchargesusersasubscriptionfeeforfeaturestoconnecttosalestools—thoughithasmadelittlerevenuesofarasitonlybeganmonetizinginApril,Murraysays.Thisweek,Cabalislaunchingamobileappthatprovidesadashboardforinvestorsandadviserstoseeallthewaystheycanhelptheirportfoliocompanies. Cabalwasstartedby(fromleft)FahimFerdous,cofounderofadvertisingmarketplaceAdquick,and...[+]BrianMurray,apartneratCraftVentures. Cabal Withaslowdowninventureinvestingshiftingthemarketawayfromfounder-friendlyterms,MurraysaysheforeseesevenmoreutilityforCabal.“Ithinkthatfoundersshouldbelookinginwardalotduringthesetimes,towardstheircaptableandtheiradvisorsforsupport,”hesays.“They’restillthereandtheywanttohelp—especiallyifthey’regoingtobelessactiveinmakingnewinvestments,thenyoucanhavethembemoreactiveincontributingtoyourbusiness.” MurrayandFerdousalsooptedto“gamify”thesystembycreatingaleaderboardthattrackshowmuchhelpeachinvestororadviserhasprovided.ThatcankeepVCsaccountable,butalsorewardthosewhoarepullinganoversizedload.CabalsyncswithcaptablemanagementtoolslikeCartaandPulleytoallowcompaniestogiveequitytothemosthelpfuladvisersorothernon-stakeholdingindividuals(say,someonewhohasadvocatedforthecompanyonsocialmedia).“Equityhasbeen,historically,averypowerfulwayofbuildingwealth,butit'sbeenprettylimitedtopeoplewhoarealreadywealthylikeinvestors,”Murraysays.“Now,peoplecanbuildaportfolioandbuildupequitybasedontheircontributionsandtheirauthenticinterestandwillingnesstohelpwithcompanies.” Ohaniansayshe’smostexcitedaboutthepotentialofCabaltohelpusherinan“unbundlingofventurecapital”thatwillsteerpowerawayfromthetraditionallydominantVCfirms.TouseananalogyfromtheMarvelCinematicUniverse,Ohaniansaysthatinthepast,astartuppickingatoptierfirmwouldbelikesigningapartnershipwiththeAvengers.“ThemostsophisticatedfounderscancutthroughtheBS,andwhattheyrealizeis,youmayhavetheAvengersonyourcaptable,butwhenThanosshowsupandtheysendHawkeye,they’relike‘WhythehellwouldyousendHawkeye?IneedThor,’”hesays.“Now,thebestfounderscanbuildacaptablebasedontheindividualsuperheroestheycanpullon.” Followmeon Twitter. Sendmeasecure tip. KenrickCaiEditorialStandardsPrintReprints&Permissions