Quarry software

Brief

Early team members had been promised equity in emails and chat messages, some of which were never documented. An investor term sheet required a clean capitalization table within six weeks.

• Equity promised in emails
• Undocumented early grants
• A six-week diligence deadline

The founders wanted to close the round on time without souring relationships with the early employees who had helped build the product. Quarry is an illustrative client, and this matter was written for a design sample. Read the other illustrative matters.

Approach

We collected every equity promise, confirmed each one with the person involved, and documented grants with vesting that matched what had actually been agreed, before diligence began.

We built a single spreadsheet of every promise, then met each early team member to confirm what they understood they had been offered.

Diligence goes quickly when the company tells the investor its own story first.

The founders saw a status table every Friday showing which grants were confirmed, drafted, signed and approved by the board. Any promise that could not be confirmed was flagged early so the founders could decide how to honor it.

Client

Quarry builds scheduling software for regional healthcare clinics. The company has fewer than thirty people, most of them engineers, and sells to clinics across three states.

Results

The company entered diligence with a documented capitalization table, signed grant agreements and board approvals for every issuance.

The round closed on the original timeline with no equity questions left open.

The same grant templates now cover every new hire, so the next financing round starts with a table that is already clean.