When it comes to venture capital investment, there’s some confusing terminology that gets thrown around with some equally mercurial mathematics – sometimes these calculations remain a mystery to even the sharpest of founders. The truth of the matter is, a lot of the more basic math behind early investment capital is quite simple, and importantly, […]
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The Importance of a “Clean” Capitalization Table for Investors
A company’s capitalization table clearly lays out all the equity and debt ownership and liquidation rankings of the various investors or lenders invested in a business. For most startups, that is typically a list of the various stockholders and their percentages owned, since most startups do not typically attract traditional debt lenders. But, equity takes many forms, […]