Downturns can significantly affect a company's cap table. During downturns, the company's valuation may decrease, which can lead to a higher percentage of ownership being given to investors in exchange for capital. This can dilute the ownership stakes of existing shareholders, including founders and employees. It's important for companies to manage their cap tables strategically during downturns to minimize dilution and maintain control.
Ever wondered why some companies stay under the control of their founders, while others shift into t...
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