Glossary: Fundraising and Cap Table Terms
Terms used in the business tools.
- Cap table — the record of who owns what in your company.
- Dilution — the reduction in ownership percentage when new shares are issued.
- Liquidation preference — the order and multiple in which investors are paid at exit.
- Runway — how long your cash lasts at your current burn.
- Burn — net cash consumed per month.
- LTV and CAC — customer lifetime value and customer acquisition cost.
- TAM, SAM, SOM — total, serviceable, and obtainable market.