How does a cap table change during funding rounds?

Quick Answer:
New investors dilute existing ownership by adding more shares to the table.

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Learn More:
Each funding round introduces new equity — often reducing the percentage owned by founders and earlier investors. Understanding post-money valuation and share issuance is key. Tracking these changes manually can lead to costly errors; digital tools like Findex automate equity recalculations and maintain historical version control for every funding round.‍

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