In the finance lingo, a "waterfall" refers to the tool that visually represents the sequential breakdown of a starting value to the final results, such as the ownership, by displaying intermediate values and leakage points. Companies typically use this tool to track data on each step. When it comes to monitoring shares in a company, the waterfall analysis is utilized to calculate the breakdown of company's total value amongst its shareholders upon exit of the company. This is useful for both the company investors and its founders as their share of the company's value might differ from the cap table percentage of shares, based on various factors. This method presents the company's data in an impactful manner, making it a popular tool in the industry for years.

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