Business Pitch Dictionary by pitch.dog
Cap table, ownership & dilution · Working

Nominee

Also called: nominee holder

ELI5

Someone holds the shares for the real owner.

Used in conversation

“The nominee structure simplifies a crowdfunding cap table.”

Definition

A person or entity holding legal title on behalf of another beneficial owner.

Here “Nominee” means: A person or entity holding legal title on behalf of another beneficial owner.

Pitch context

You will see “Nominee” 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.