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How to Read a Cap Table

We explore what a seasoned venture capitalist looks for in a cap table when judging the potential of an investment.

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An important part of being a venture capitalist is performing diligence on new investments. One of the most basic forms of diligence is a review of a company’s cap table.

Many new to venture investing have questions about what a cap table is and the purpose it serves. In this Venture 101 piece, we’ll explore its importance, how to read it, and what a seasoned venture capitalist looks for in a cap table when judging the potential of an investment.

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Written by

Laura Bordewieck Rippy

Laura is the Managing Partner of Green D Ventures and brings operational perspective as a CEO, Chairman, and executive in technology startups. She also served as CEO at Handango, creating the first marketplace of mobile apps. At Microsoft, she co-founded two businesses as an intra-preneur in an elite swat team spun out of Bill Gates’ office. She holds an MBA from Harvard Business School and AB in Government from Dartmouth (‘89).

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