Starting Your Own Investment Firm

If you're trying to understand starting your own investment firm, you're looking for a clear answer — and how it actually plays out on your cap table, not just the general concept.

What This Actually Means for Your Cap Table

At its core, this touches on cliff period and vesting period. Most explanations stop at the general definition — this one is written for what happens to your ownership records next.

This is exactly the situation starting your own investment firm comes up in for most founders.

Where This Fits on Your Cap Table

Cliff period and Vesting period both depend on the same underlying ownership data, so getting this right keeps your cap table accurate instead of quietly wrong. Lovie's cap table platform treats this as connected data, not a one-off calculation.

Most explanations of starting your own investment firm stop at the general concept, not the cap table impact.

• Cliff period should be reviewed whenever your equity structure changes
• Vesting period changes the math for every existing stakeholder
• Most mistakes here come from tracking this in a spreadsheet instead of a live cap table

Starting your own investment firm is easiest to get right when it's tied to a live cap table, not a static example.

Frequently Asked Questions

What is starting your own investment firm?

It depends on your specific situation, not a general rule — cliff period is best checked against your actual cap table, not a static example.

• Confirm cliff period against your latest cap table, not an old spreadsheet
• Get any resulting change in writing before it affects a funding round
• Re-check this every time your equity structure changes

Does this need to be reflected on your cap table right away?

Most founders get this wrong by treating it as a one-time task. It's worth revisiting every time you issue new equity, add a stakeholder, or close a round.

• Update your cap table the same day the change happens, not at quarter-end
• Loop in whoever else relies on the cap table — co-founders, investors, your accountant
• Keep a record of when and why the change happened, not just the new numbers

The Lovie Advantage

Lovie calculates cliff period against your actual grant date and schedule, not an approximation — so what's vested today is always the real number, not a rough estimate.

For a related question founders often ask right after this one, see How do I Add Investors to My LLC.

Start Free with Lovie

No credit card, no per-seat pricing — just your cap table, done right. This is worth getting right on your cap table from the start. Start Free with Lovie keeps this connected to formation and funding — not three separate tools.