Question
A Cap Table can help in attracting investors by providing a clear and transparent overview of the company's ownership structure. It shows who owns what percentage of the company, which can be a crucial factor for investors when they are deciding whether to invest in a company or not. A well-structured Cap Table can demonstrate that the founders have a significant stake in the company, which can be an attractive factor for investors as it shows that the founders have a vested interest in the success of the company.
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Enter the Capitalization Table – or Cap Table for short. A cap table basically lists all the owners of a company and the percentage of the company each owns. To explain how a cap table works consider another well-known company: Airbnb. Its founders, Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, created one of the most founder-friendly companies by ensuring they retained majority ownership of the company shares in their cap table.
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