Understanding how long startup capital can sustain operations before the startup needs to secure additional funding is an important metric for investors to understand. While there is a basic calculation for startup runway, determining a startup’s true runway is more … Continue reading
Venture Capital
Learn More About Follow On Investment in Subsequent Funding Rounds Follow on investments are most commonly associated with institutional investments from venture capital or private equity firms. However, the same concept can be relevant to individual investors, deciding whether or … Continue reading
Pro rata rights represent the right for investors to participate in subsequent rounds of startup funding beyond their original investment. Generally utilized to preserve ownership stake when a startup pursues additional rounds of funding, pro rata rights are typically used … Continue reading
SAFEs (Simple Agreements for Future Equity) have emerged as one financial instrument startups may choose to utilize when raising capital. Initially developed by Y Combinator in 2013 as an alternative to convertible notes, a SAFE investment provides an option for … Continue reading
Most startups fail. In order for a startup to beat the odds, it must find its product/market fit. Continue reading
For many years, venture capital was limited to a select few – the ultra-wealthy high-net-worth individuals who had direct connections to startups. Now, access has been expanded, opportunities have grown, and investors may have the opportunity to write smaller checks … Continue reading
Taking an idea and turning it into a functional business can take time, effort, and money. While founders can grind their businesses using time and effort, securing the necessary capital is one important challenge entrepreneurs face. When a startup needs … Continue reading
For years, the word startup brings up a picture of a young, innovative, and fast-moving company. However, now we are seeing older companies still being referred to as startups (@ SpaceX’s age of 23 years old) and today’s startups are … Continue reading
A startup raising its first funding round can be an exciting milestone. However, it can be challenging to attract investors so early in a company’s history. Without extensive financials, metrics, and sometimes even pre-product, what do private market investors look … Continue reading
When investing in private companies, investors may be interested in rebalancing their investment portfolio at various points in time. However, private market investments are inherently illiquid and positions cannot be bought or sold as quickly as public investments like publicly … Continue reading
