Author: Sarath

We help business owners realize their dreams by providing full company incorporation, share management and valuation
services to startup companies. Our blog is the best place to learn about valuation, equity, and the Eqvista product.

How should companies manage ESOP in their cap table?

ESOPs have been identified as one of the most preferred funding tools in the current era. While ESOPs were traditionally used to incentivize long-tenured senior management, recent trends show that they are now actively used as a recruiting strategy to recruit, retain, and attract talent. It encourages employee ownership by making them part owners, which … Continued

How to avoid qualified small business stock pitfalls?

Taxpayers can exclude income on the sale of qualifying small company shares (QSBS) under Internal Revenue Code Section 1202. Section 1202 encourages investment in small businesses, and investors may get spectacular profits. When a stakeholder other than a corporate business sells QSBS that was bought after September 27, 2010 and was held for over five … Continued

How to reflect ESOP for different funding stages in the Cap Table?

ESOPs (Employee Stock Option Plans) have become popular as a startup solution. Including an ESOP in an employee’s compensation package is now a well-known and appealing incentive; it is a win-win situation for startups and their required quality employees. However, it is essential to keep things in perspective because there may be negative consequences for … Continued

Why should you manage your cap table for an exit?

Exit plans are essential for securing a business owner’s financial future, but many only consider creating one once they are ready to leave. Business owners must consider an exit strategy but are frequently overlooked until significant changes are required. Entrepreneurs risk limiting their future options if they do not plan an exit strategy that informs … Continued

Key differences between ESOP and Management Buyout (MBO)

Employee stock options plan (ESOP) and management buyout (MBO) are two common options in planning an exit strategy. There isn’t a particular exit plan that is subscribed to work for every business owner moving forward. Helping ensure you comprehend the fundamental distinctions between corporate transition planning choices. This article will compare Employee stock options plan … Continued

Benefits of creating a simple and smart cap table for early-stage startups

A capitalization table or cap table for early-stage startups lists your startup’s shareholders and their relative stakes in the organization. It is a spreadsheet that gives a summary of the capital structure of the business. Every investor will ask for your cap table to understand the financial system and the weight of each partner in … Continued

Strategies to Maximize Section 1202 Gain Exclusion Amount

We have seen more understanding among company founders and investors about Section 1202. Investors in QSBS are entitled to an exclusion from taxable profits of up to $10 million under Internal Revenue Code Section 1202. The standard $10 million gain exclusion ceiling under Section 1202 will be more than enough for many taxpayers. However, some … Continued

Employee Spotlight: Calvin Chow, Valuation Analyst, Eqvista

In this edition of our Employee Spotlight, we’re happy to chat with our newest member of the valuation team, Calvin Chow. Calvin is a valuation analyst helping clients with performing numerous valuations for different companies. Hi Calvin, Thanks for joining us for this interview! Congratulations on your new role. Please tell us a little bit … Continued

Top Startup incubators and accelerators in Europe

Participating in startup incubators may be a great way to get your company off the ground and get valuable experience in preparing your brand for launch. Accelerator program alums have a 23% better chance of staying in business than their peers. Startup accelerators rely heavily on mentoring and coaching. Outside traditional tech centers like Silicon … Continued

409A Valuation at $89 a month for Startups Affected by SVB Failure

The SVB fiasco is the talk of the business town now. Silicon Valley Bank financed startups beyond the Bay Area. It supported half of all US venture-backed firms and 44% of US venture-backed healthcare and technology companies that went public in 2022. SVB may reveal its risk management and other procedures, which have caused many … Continued

Interested in issuing & managing shares?

If you want to start issuing and managing shares, Try out our Eqvista App, it is free and all online!