In order to get a pulse on how a startup is doing, it’s important to be able to read and digest their financial statements. Continue reading
Venture Capital
For any company, the board of directors can have a major impact on direction and growth. As such, we would urge startups to begin assembling their board carefully. Continue reading
The option pool can be a point of contention in negotiating terms. We’re walking through what an option pool is, how they work, and how they can affect valuation. Continue reading
As many companies are staying private longer, pre-IPO investing on the secondary market has been trending up. Continue reading
Between Regulation A, Regulation CF, and Regulation D, making sense of which type of equity raise may be right for your startup can overwhelming, which is why we’ve broken it down from A to D. Continue reading
The reason why an increased valuation doesn’t necessarily lead to an increased price per share? Equity dilution. Continue reading
Also known as a “locked-up,” “lock-in,” or “lock-out” period, a lock-up period is the timeframe in which existing shareholders, such as corporate insiders, employees, owners, founders, and private investors, are prohibited from selling or redeeming their shares in a company … Continue reading
While we touched briefly on this topic in our recent blog on reading term sheets, liquidation preferences are a term that’s worth taking a second look at for early-stage investors. In fact, after a company’s valuation, liquidation preference may arguably … Continue reading
In the midst of growing a company and all that entails, issues like equity dilution may seem too far off to worry about for many startup executives, something to worry about later. But when mishandled, the effects of equity dilution … Continue reading
Used to analyze venture capital and private equity investments, internal rate of return, or IRR, is an indispensable tool in your investor toolbox. If you’re unfamiliar with IRR, understanding its basic mechanics may help you make better investment decisions long-term. … Continue reading
