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Rather, it gets recorded in a document called the CapitalizationTable (or “Cap Table”), which shows the ownership stake each person or entity has in the business. In this manner, you can see both the current equity distribution of the company, as well as historically what the equity holdings looked like.
The reason these terms can produce returns by themselves is that they set the stage for a rejiggering of the capitalizationtable at some point in the future. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches.
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