Business Pitch Dictionary by pitch.dog
Funding rounds & stages · Working

Recapitalisation

Also called: recapitalization, recap

ELI5

Change the company's financial and ownership structure.

Used in conversation

“The recapitalisation simplifies the preference stack.”

Definition

A significant change to a company's mix of debt, equity or ownership rights.

Here “Recapitalisation” means: A significant change to a company's mix of debt, equity or ownership rights.

Pitch context

You will see “Recapitalisation” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding rounds & stages.

Why it matters: In funding rounds & stages, 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 · 8

Direct term-level sources and supporting source families.