When you invest in private equity, your ownership is dictated by the cap table.
It’s a document that outlines every single person or entity that owns equity in a startup – and how large of a stake they hold.
Each round, as more investors put capital in, the cap table changes. Usually, that means your stake will change, too, unless you put more money in.
There’s a lot you should know about cap tables. After all, they’re the only way you’ll know for sure how much equity you hold – and how much of a return you’re likely to get.
Just check out the video above to learn more.
Until next time,