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.
Recently, Shark Tank‘s Robert Herjavec and I sat down to discuss some of the most important things we look for when we’re vetting private equity deals. It was such an amazing opportunity – it’s not every day that I get to bounce my ideas off one of the most famous angel investors in the world!
Amazingly, we found that we had much more in common than we ever expected (we even started finishing each other’s sentences!). And our investing strategies? They were nearly identical.
If you haven’t already, you really should see this “meeting of the minds.” Just click here to check out a rebroadcast.
In the meantime, 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,
4 responses to “What Your Seat at the Cap Table Really Means”
August 08 2019