Why Equity Rarely Pays Out: Exit Math and Capital Priority Funnel

This visual illustrates how investor equity payouts diminish from initial ownership to the final cash outcome due to dilution, term stack, and capital priorities. Founders can use this to understand the complex journey of equity value and set realistic exit expectations for themselves and their investors.

This visual illustrates how investor equity payouts diminish from initial ownership to the final cash outcome due to dilution, term stack, and capital prioriti…

Tags: equity stack, exit strategy, dilution, capital priority, term sheet, investor expectations, founder equity, startup finance

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