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

Pre-money capitalisation

Also called: pre-money cap table

ELI5

Who owns what just before the new investment.

Used in conversation

“The pre-money capitalisation includes the expanded option pool.”

Definition

The agreed capitalisation basis immediately before a financing.

Here “Pre-money capitalisation” means: The agreed capitalisation basis immediately before a financing.

Pitch context

You will see “Pre-money capitalisation” 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.