Cap table, ownership & dilution · Core

Investor ownership

Also called: investor equity

ELI5

The part of the company owned by investors.

Used in conversation

“Investor ownership increases after the new round.”

Definition

Equity held by investors under a stated capitalisation basis.

Here “Investor ownership” means: Equity held by investors under a stated capitalisation basis.

Pitch context

You will see “Investor ownership” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.

Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.