A cap table, or capitalization table, provides a detailed breakdown of a company's shareholders and their respective ownership stakes. This can influence investor decisions in several ways. Firstly, it gives investors insight into the company's ownership structure, including the distribution of equity among founders, employees, and other investors. This can help them assess the company's financial health and stability. Secondly, it can reveal potential red flags, such as a high concentration of ownership in a single entity, which could pose risks to the investor. Lastly, it can provide clues about the company's future fundraising potential and exit strategy, which are key considerations for investors.
Ever wondered why some companies stay under the control of their founders, while others shift into t...
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