As human beings, our decisions are based on a mixture of facts and beliefs. This can extend to the decisions we make, including investment decisions. Behavioral finance theorizes that these psychological biases play a large role in our economic and … Continue reading
MicroVentures Blog
If a company has issued securities, it typically has a capitalization table providing detailed information on the securities. A key due diligence item for investors to understand, cap tables can help reveal how stakeholders are impacted by dilution from subsequent … Continue reading
Characterized by voting rights, like electing company directors, common stock is just what it is – the most basic form of stock issued by a company. Common stockholders do not receive a priority claim over dividends or distribution of company … Continue reading
In the world of early-stage startups, it is highly unlikely that earlier stage companies have adequate historical data in order to help determine future revenue levels. Seasonal purchasing decisions, trends, and the nature of early-stage startups can make it difficult … Continue reading
Exposure to commodities is a portfolio diversification strategy that investors may explore, particularly during inflationary periods. Encompassing raw resources such as metals, oil and gas, agricultural products, and livestock, commodities investing has historically been viewed as a hedge against inflationary … Continue reading
General solicitation rules allow companies to broadly advertise their capital raise to a wide audience via newspapers, magazines, public websites, television, radio broadcasts, and other forms of communication. This helps facilitate investment marketing to reach potential investors and inform them … Continue reading
Preferred stock is a financial instrument used to help raise funds in the private market. Typically, preferred stockholders receive a priority claim over dividends and distribution of company assets in the event of liquidation. Some investors may favor the priority … Continue reading
When choosing to make investments, it can be easy to follow the crowd and make investments based off what other investors are doing. If others are investing in this company, it has to be a good investment? However; not everyone’s … Continue reading
Determining how much money to raise for a startup can be challenging – especially if the startup is seeking pre-seed or seed funding. Even once the company has calculated the operational costs to reach the next stage of growth, there … Continue reading
Convertible notes are financial instruments used to raise funds in the private market and have some overlap with properties of equity and debt. In this blog, we will introduce them and cover specific considerations investors should be aware of. Convertible … Continue reading
