⏳dead equity

I was talking with another founder friend recently about a company he was considering acquiring. We were talking about the cap table of this company and one of the things he was most concerned with. Dead equity. If you haven’t heard this term before, allow me to explain and then we can get into why it’s potentially problematic. Dead equity is the part of your cap table that is no longer active in your business. It’s equity held by people or entities that are not helping you grow the business....