What's a Recap?

If you want to get advantage of that new round, you have to put up money. So it's kind of like putting a gun to the existing investors head. You can be sure you've burned your investors and they probably will not work with you in the future. And then finally, pot sweetener. Then there comes the recap, the deadly, brutal recap. What do you do? I thay, listen, we're recapping the company. All of the current shareholders will become common, and they own 20 % of the company. The two founders out of the four who want to keep going, they're going to get 30 % each. New management team is going to get