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For occasion, on this case, giving 50 shares to two new investors lowers the proportion of the equity held by the present founders by 9,1%. Long things short, the cap table is there for 2 reasons. The first one is to clarify to the reader how a lot you value the enterprise. The different is to show the reader how much money they’ll make if they put money in your business. The point right here is not essentially to write every little thing down with full sentences, it is to be prepared in relation to throwing numbers on the people you talk to.
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