Introduction The stages of financing typically act as checkpoints during a startup’s growth process. Stages may overlap sometimes, and some may be skipped altogether. It...
Introduction Access to capital is crucial to accelerating the growth of all startups. Typically, getting investors to believe in your business through investments is one...
Introduction Secondaries are transactions where an existing stockholder sells their stock for cash to third parties or the company before the company undergoes an exit....
What is an Investor Update? Importance of Investor Update An investor update is very important for the following reasons; Encourages accountability and transparency. Giving investors...
What is a Cap Table? A Cap Table is a spreadsheet or table that shows a company’s equity capitalization, providing an analysis of the percentages...
A capital raise is when companies approach investors to provide additional capital in the form of either debt or equity. It is common for startups...
Fundraising is a crucial part of running a successful company. As a founder, understanding the nitty-gritty of raising capital leaves you with adequate funds to...
Preference rights are rights granted to holders of preference shares that give these shareholders preferred treatment or priority over common shareholders on some issues in...
Many startups begin with bootstrapping—the founders financing the business themselves—or with the contribution of family and friends. However, as the business grows, so does the...
Generally, the valuation of a company entails determining its economic value. In doing this, the founders analyze all aspects of the business, including the company’s...
Introduction Over the years, venture debt has become popular, especially for founders in low-interest environments. Despite this increase in popularity, venture debt is still misunderstood...
SAFE is an acronym for Simple Agreement for Future Equity. It is an agreement between an investor and a company that allows investors to convert...
Share dilution refers to the decrease or reduction in the ownership proportion or percentage of shares held by existing shareholders in a company. Instances,...
An investor is an individual who injects capital into a business or startup. Many investors provide funding in exchange for a portion of ownership in...
What is a Deal Room? A Deal Room, also known as a Data Room, is a secure physical or virtual space where confidential documents can...
In debt financing, an investor lends money to a startup, and the startup promises to repay the debt with interest. There is no cash exchange...
Due diligence is the opportunity investors have to gather the information they need about startups to make an informed decision before investing and minimizing their...
What is a Pitch Deck? A “pitch deck” is a visual presentation that conveys a business idea to any number of people, usually potential investors....
Compensation and benefits are essential factors to consider in a workplace. They contribute to employee satisfaction, motivation, productivity, and high-performance rates. Thus, internal and external...
Startup accelerators are programs that provide support and resources to early-stage startups in exchange for a small equity stake in the company. These programs are...
Raising funding for a startup requires persistence, determination, and a clear understanding of your business model and goals. There are three factors that can affect...
The major difference between advisory shares and regular shares is that companies give advisory shares as a form of reward to experts for their technical...
Phantom stocks, also known as shadow stocks, are a kind of employee incentive and compensation plan that mimics an actual company share but without ownership...
A cap table (or capitalization table) is a financial snapshot of the company created using a spreadsheet that outlines the ownership stakes and the distribution...
The valuation cap sets a maximum valuation at which an investor can convert a convertible security into equity, guaranteeing that your early support is rewarded...
A convertible note is a financial instrument commonly used in early-stage startup financing. It is a type of debt that may ultimately be converted into...
Are you navigating the intricate world of business deals and acquisitions? When two parties are considering a transaction, they often use three documents to outline...
The distinction between a SAFE (Simple Agreement for Future Equity) and a convertible note rest at the heart of innovative fundraising strategies. While both mechanisms...
Raising funding for your startup demands a strategic blend of innovation, persistence, and relationship-building. In today’s dynamic business landscape, securing financial support is a multifaceted...
At the heart of investment strategy lies the Distribution Waterfall Model—a dynamic framework governing the allocation of returns in finance. With its structured hierarchy, this...
Crowdfunding and angel investing are two distinct approaches to raising capital, each with unique advantages and challenges. Crowdfunding involves sourcing funds from a crowd of...
Imagine raising capital for your business without having to pay it back. That’s the power of equity financing. With equity financing, you sell shares of...
Pre-series Funding represents the crucial bridge between the early stages of a startup’s life and the more substantial Series A round. It’s the initial infusion...
Series A, B, C, D, and E funding are the different stages of startup funding that companies go through as they grow and expand. Each...
Series A, B, and C equity compensation are the three main stages of equity compensation that startups offer their employees and founders. Equity compensation is...
Understanding the types of liquidation preferences is akin to deciphering the secret language of venture capital. Put simply, liquidation preferences are the lifeboats investors and...
Navigating the financial landscape of a startup can be as thrilling as it is complex. You’ve likely heard of equity roll forward, but what does...
Navigating the startup financing world can be complex, but you’ve likely heard of convertible notes. They’re a popular tool for early-stage companies, and understanding them...
Fundraising for the first time brings excitement and frustration for entrepreneurs and small businesses. Successful fundraising is about building trust, having a strong team, a...