Financing
Accounting for Stock Compensation
This article moves beyond the basics of stock compensation (including stock options) and touches on the accounting complexities associated with stock compensation awards.
Acquisition Decision Making
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.
Anti-dilution Provisions
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.
Bridge Loan Financing for Startups
Common features, qualifications, and settlement of rapid IPO capital providers called bridge loans and their impact on startup companies.
Choosing a Stock Exchange
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.
Convertible Preferred Stock and Convertible Debt
Startups typically raise capital by issuing convertible preferred stock or convertible debt. Find answers to frequently asked questions about these financing arrangements.
Debt IPO
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.
Debt Restructuring for Pre-IPO Companies
Learn how pre-IPO companies can restructure debt to navigate financial distress.
Dilution and Stock Option Pools
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.
Equity Compensation: Restricted Stock Units vs. Restricted Stock Awards
Before determining how to compensate employees, learn how restricted stock units and awards are accounted for and the tax implications for your business.
Foreign Listings on U.S. Exchanges
Lots of companies, including foreign companies, list on U.S. stock exchanges. Check out this article to find out why.
Founder Control
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.
Liquidation Preferences
Learn about the mechanics of liquidation preference calculations and how these provisions can influence the amount that shareholders receive during an exit.
Mezzanine Loans
Mezzanine lending is a hybrid loan option for companies that need an influx of cash but in which the owners want to retain control.
Overview of Startup Financing
Gain a broader perspective about startup financing and find out how startups raise capital to fund their growth.
Private Equity
Private equity can be confusing, but it doesn’t have to be. Learn the basics of the private equity industry in this article.
Private Placements: Reg D Offerings
Fewer regulations and more flexibility—a private placement may be a good source of funding for your company's next big project.
Regulation A+ Mini-IPO
Learn about Reg A+ offerings (mini-IPOs) and what to expect if your company is considering this alternative form of equity financing.
Revenue-Based 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
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.
SPAC: Lessons Learned
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.
Startup Debt Covenants
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.
Stock Options 101 (for Employees)
This article provides an easy-to-understand overview of how stock options work and why startups use them.
Tech Valuations (SaaS)
Learn the unique valuation principles that are used for technology and SaaS companies to maximize your valuation potential.
Term Sheet Provisions (Part I)
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 Sheet Provisions (Part II)
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 Overview
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.
The Black-Scholes Model
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.
The Stages of Startup Financing
Follow the financing path of startups from seed money to exit and learn about the pros and cons of bootstrapping.
The Use of IPO Proceeds
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.
Total Addressable Market
Understanding TAM is important for defining your company’s strategy and determining a valuation during all stages of a start-up’s life cycle.
Types of Startup Investors
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.
Valuation
Startup valuations are at the center of negotiations between investors and founders. Find out how investors determine a company’s worth.
Valuation Caps and Conversion Discounts
Delve into the mechanics of how investors structure convertible debt arrangements with valuation caps and conversion discounts to protect the value of their investments.
Valuation Considerations — Earnings Quality and Accruals
Earnings quality refers to the quality and reliability of your financial statements. Learn how investors will analyze your earnings quality during the valuation process.
Venture Capital
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.
