Recapitalization
정의
A recapitalization restructures a company’s ownership and preference stack, often wiping or converting old preferred stock so new money can come in clean.
투자유치 시 활용 방법
Recaps rescue fundable businesses trapped under broken cap tables, at the cost of heavy dilution for prior holders.
자주 묻는 질문
When does a recap make sense?
When total preferences and dead equity make new investment impossible; a painful reset beats a shutdown.
What happens to founders in a recap?
New investors typically re-up active founders with fresh equity and vesting, since the business needs them motivated.