Insights

In venture finance, clarity isn’t optional, it’s mission-critical Yet many teams misread their cap tables, mistaking ownership for outcome. The real story unfolds in the waterfall: the logic and math that determine who gets what at exit. 🔗 Why Ownership Isn’t Enough 🔗 The Formula That Drives Returns 🔗 What You Need for True Clarity 🔗 Common Pitfalls in Waterfall Modelling 🔗 How VCM Solves the Waterfall Puzzle Waterfall calculations aren’t just a technical layer, they’re

Not quite. Ownership shows who holds what, but not necessary who gets what - at exit. 🧩 The Missing Piece: Waterfall Calculations Exit outcomes hinge on share class rights and preferences. Without modelling those, your cap table is just surface-level. 🔍 Why It Matters Waterfalls are the hidden engine behind: •⁠ ⁠Cap table modelling •⁠ ⁠Professional fair value assessments •⁠ ⁠Accurate Exit distributions 👉 Our carousel breaks it down: how the waterfall rather than just the c