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Venture vocabulary
The capitalization table — a record of every share, option, warrant, and convertible instrument in a startup, broken down by holder. Cap tables track ownership percentages, dilution effects of new rounds, vesting schedules, and option-pool refresh decisions. Investors review the cap table before committing capital because past structuring decisions (heavy preferences, founder control issues, dead equity) can make a clean term sheet impossible.
Stage names, instruments, and core financial metrics.
The earliest venture-funding stage, typically a $250k–$2M round that funds the first six to twelve months of a startup's work — often before there is a product, sometimes before there is a team.
The first institutional venture round, typically $1M–$5M, that funds the build of an MVP and the search for product-market fit.
The first priced equity round following the seed, typically $5M–$20M raised against a $20M–$80M post-money valuation.
The second priced equity round, typically $15M–$50M raised against a $80M–$300M post-money valuation.
The investor who sets the price, terms, and structure of a venture round and typically writes the largest check.
A short, non-binding document outlining the principal terms of a venture investment — valuation, security type, board composition, anti-dilution, liquidation preference, and protective provisions.
A pre-priced venture instrument originated by Y Combinator in 2013 — a contract that converts to equity at the next priced round at a discount or under a valuation cap.
A short-term debt instrument that converts to equity at a later priced round.
This definition is published under CC BY 4.0. Cite as:
The Data Nerd. "Cap Table." VC Deal Flow Signal Glossary, https://signals.gitdealflow.com/define/cap-table.
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