Learn about the mechanics of liquidation preference calculations and how these provisions can influence the amount that shareholders receive during an exit.
What is the Black-Scholes Model (BSM), how is it developed, and how does it compare to lattice models? The answers can be found in this article.
Earnings quality refers to the quality and reliability of your financial statements. Learn how investors will analyze your earnings quality during the valuation process.
This article provides an easy-to-understand overview of how stock options work and why startups use them.
Douglas Jepsen and Jeff Wilks
Startups typically raise capital by issuing convertible preferred stock or convertible debt. Find answers to frequently asked questions about these financing arrangements.
Fewer regulations and more flexibility—a private placement may be a good source of funding for your company's next big project.
Find out how warrants can increase your capital (hint: these aren’t search warrants).
Term sheets explain the details of a VC firm’s investment offer. Learn more about these important documents and discover some tips for navigating negotiations.
Securing capital from outside investors will dilute your ownership position. Learn about how funding rounds and stock option pools can affect your startup’s ownership structure.
Startup valuations are at the center of negotiations between investors and founders. Find out how investors determine a company’s worth.
Gain a broader perspective about startup financing and find out how startups raise capital to fund their growth.
Douglas Jepsen and Jasper Martin
Founders have more financing options than ever before. Cut through the confusion and get an in-depth look at the different types of startup investors.
Follow the financing path of startups from seed money to exit and learn about the pros and cons of bootstrapping.
Find out how Venture capital (VC) firms are structured, how they decide which startups to invest in, and what characteristics you should look for in a VC investor.