This article moves beyond the basics of stock compensation (including stock options) and touches on the accounting complexities associated with stock compensation awards.
Before you decide to acquire another company, be sure to carefully identify synergies and consider how to avoid your cognitive biases that could destroy value.
Investors often receive anti-dilution provisions in funding arrangements. Learn more about these provisions and how they can affect the ownership structure of your startup.
Common features, qualifications, and settlement of rapid IPO capital providers called bridge loans and their impact on startup companies.
Josh Mortensen and Jason Ni
Executives have identified five key issues to consider when choosing the right stock exchange for your company. Learn how the NYSE and Nasdaq compare on each of these issues.
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.
A debt IPO is the first issuance of corporate debt to the public by private companies that seek to raise money in a liquid capital market. This article hopes to provide the institutional details of a debt IPO as a cost-effective alternative to traditional equity IPO for healthy private businesses that consider going public.
Learn how pre-IPO companies can restructure debt to navigate financial distress.
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.
Justin Holmstead and Alexis Berrett
Before determining how to compensate employees, learn how restricted stock units and awards are accounted for and the tax implications for your business.
Brett Bartholomew and Morgan Hunsaker
Lots of companies, including foreign companies, list on U.S. stock exchanges. Check out this article to find out why.
This article will help you understand the strategies and trade-offs involved in maintaining or ceding control of both the majority ownership and management control of your company.
Learn about the mechanics of liquidation preference calculations and how these provisions can influence the amount that shareholders receive during an exit.
Mezzanine lending is a hybrid loan option for companies that need an influx of cash but in which the owners want to retain control.
Gain a broader perspective about startup financing and find out how startups raise capital to fund their growth.
Brett Bartholomew and Michael Hansen
Private equity can be confusing, but it doesn’t have to be. Learn the basics of the private equity industry in this article.
Fewer regulations and more flexibility—a private placement may be a good source of funding for your company's next big project.
Chapman Ellsworth and Josh Mortensen
Learn about Reg A+ offerings (mini-IPOs) and what to expect if your company is considering this alternative form of equity financing.
Looking for startup friendly debt? Revenue-based financing has allowed hundreds of growing companies leverage monthly recurring revenues to avoid the costs of dilution.
Reverse mergers are a way to go public without going through an IPO. If you’re unfamiliar with reverse merger, SPACs, or seasoning requirements, this is the article for you.
How can I buy or sell stock in a company before an IPO?
A special purpose acquisition company (SPAC) is a company designed to raise capital through an initial public offering (IPO) for the purpose of funding the merger or acquisition of target companies within a specified timeframe.
Negotiating debt covenants is often part of getting a bank loan. This article describes different types of debt covenants and their impacts on your business.
This article provides an easy-to-understand overview of how stock options work and why startups use them.
Justin Holmstead, Andy Merkley and Rand Hawk
Learn the unique valuation principles that are used for technology and SaaS companies to maximize your valuation potential.
Term sheets are complex documents full of legal jargon. Learn about some of the most important provisions within a term sheet while gathering helpful negotiating tips.
Term sheets are complex documents full of legal jargon. Learn about some of the lesser-known provisions within a term sheet while gathering helpful negotiating tips.
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.
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.
Follow the financing path of startups from seed money to exit and learn about the pros and cons of bootstrapping.
An IPO company is likely to raise a significant amount of capital during the IPO, but even more important than the money a company raises is how the company uses its IPO proceeds.
Understanding TAM is important for defining your company’s strategy and determining a valuation during all stages of a start-up’s life cycle.
This article covers accounting for tranched preferred stock, why companies benefit from financing this way, and why investors benefit as well.
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.
Startup valuations are at the center of negotiations between investors and founders. Find out how investors determine a company’s worth.
Delve into the mechanics of how investors structure convertible debt arrangements with valuation caps and conversion discounts to protect the value of their investments.
Earnings quality refers to the quality and reliability of your financial statements. Learn how investors will analyze your earnings quality during the valuation process.
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.
Find out how warrants can increase your capital (hint: these aren’t search warrants).