A Cap Table can be used as a strategic tool in business by providing a clear picture of the company's ownership structure. It shows who owns what percentage of the company, which can be crucial in decision-making processes. For instance, it can help in determining the distribution of profits, or in the event of a company sale, it can clarify how the proceeds will be divided. Moreover, it can be used as a tool for planning future fundraising rounds, as it provides a clear view of the dilution that would occur with the introduction of new investors.
Ever wondered why some companies stay under the control of their founders, while others shift into t...
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