Ever since the Great Resignation began in 2021, organizations all over the world have placed great impetus on improving company cultures. According to MIT researchers, toxic corporate culture is 10.4 times more likely to cause attrition than low or inadequate compensation and 20% of employees leave their jobs because of the company culture. Gallup, a …
Imagine having the foresight to predict the perfect moment to unlock the value of your equity. Understanding the market dynamics, investor expectations, and personal financial needs with such clarity that you can make a decision that benefits both you and your company. The timing of liquidity events is important. Too early, and you might leave …
For startup founders, the journey from idea to exit involves numerous financial decisions. Section 1202 of the IRC creates a remarkable incentive to reward the risk-takers who pour their time, resources, and vision into creating small businesses that drive American innovation. QSBS represents one of the most significant tax advantages available to founders who build …
Venture debt is extended to venture-backed startups and typically amounts to about 20-40% of the funds raised in previous funding rounds. It is meant to extend a startup’s runway and has the added benefit of mitigating equity dilution. As venture debt deal value almost doubled to $53.3 billion in 2024 and VC investments remained muted, …
Companies often rely on convertible instruments such as Convertible Notes and SAFEs to raise capital. These instruments provide an efficient way for startups to secure funding without a formal valuation. However, when it comes to issuing stock options companies must comply with IRC Section 409A. While convertible instruments do not require a 409A valuation, they …
Measuring the vitality of subscription-based software businesses has become increasingly important. While various metrics measure the business performance, one has emerged as a telling barometer of a company’s momentum. This powerful measurement serves as a guidepost, helping to distinguish between excellent acceleration, moderate progress, and concerning decline in an increasingly competitive digital marketplace. Investors can …
Industries have evolved distinct liquidity patterns in the financial ecosystem based on their unique operational demands, cash conversion cycles, and market pressures. A manufacturer stockpiling inventory will present a different financial profile than a subscription-based software company, though both might be equally robust. Whether you’re an investor seeking stability, or a manager gauging liquidity, understanding …
Consider you are a small manufacturer and are faced with leasing a warehouse for an extreme seasonal sale event. Due to short notice, the owner demands a high security deposit and excessive rent. Without proper warehousing, you may lose significant profits. At this juncture, you need to assess whether you can pay the rent and …
Last Updated: December 2025 As of Dec 2025, there are over 1,639 unicorns globally, spanning around 59 countries. This marks a notable increase from previous years, with the number rising significantly since 2022, when there were approximately 1,413. The U.S. remains a leader, hosting around half of the world’s unicorns (820) and claiming more than …
When you feel you’ve reached the end of your journey with a venture, it’s crucial to make a graceful and profitable exit. This ensures a smooth transition and opens the door to new opportunities and ventures. For many entrepreneurs, buying a business can be just as strategic as selling one, offering a pathway to growth …
When looking at a company’s acid test ratio, it’s important to compare it not only to the general benchmark but also to industry-specific averages and the company’s historical performance for a more comprehensive assessment of its liquidity position. The acid test ratio is widely used across various industries for financial analysis and decision-making. Its application …
In the startup ecosystem, it is common to secure external funding and scale expenses, with the ultimate goal of achieving massive profitability. Many startups such as MailChimp, Atlassian, and 37signals choose to be self-funding startups, proving that there’s more than one path to success. Bootstrapping allowed these companies to retain control over their vision and …
Did you know that there are about 75,600 tech startups in the US as of 2024? In comparison, by the end of 2023, there were only 3,417 venture capital firms. A limited pool of VCs is tasked with evaluating and shortlisting startups for investment. Because of all this competition, securing funding from VCs is extremely …
Founded in 1977 by Chuck Newhall, Frank A. Bonsal, and Richard Kramlich, New Enterprise Associates (NEA) is a stage-agnostic venture capital firm that primarily invests in startups from the sectors of life sciences, digital health, enterprise tech, consumer, and fintech. The firm believes in taking an active role in supporting its portfolio companies. Its support …
Whether you own a business at its early stage or a well-developed stage, you will always look for better opportunities to scale. And those opportunities need proper financing to take shape. Some companies require funds to run their routine operations whereas others need cash sources to expand their operations. It is important to remember that …
Picture this: It’s 2025, and the pace of change in the business world is not just fast, it’s a whirlwind. Markets are shifting, customer expectations are evolving at breakneck speed, and competition is fiercer than ever. For founders, the challenge isn’t just about keeping up; it’s about staying ahead. Here’s some good news. Growth is …
In 1976, Apple started as a partnership between Steve Jobs, Steve Wozniak, and Ronald Wayne. To attract investors and scale its operations, the budding tech company soon became a corporation, a pivotal move that set the stage for its rise to become one of the largest companies in the world. Today, many small businesses find …
As a founder, you must be extremely wary of inaccurate valuations since they can deter investors, set unrealistic growth expectations, and lead to suboptimal decisions in key areas such as mergers and acquisitions (M&As). A great example of this would be Yahoo! passing on Microsoft’s $44.6 billion acquisition offer and then, in 2016, having to …
In one of McKinsey’s Global Survey, they found that less than 1/3rd of companies that underwent corporate restructuring could sustainably improve their performance. However, when companies implemented comprehensive actions in goal-setting, design, and implementation, the success rate shot up to as high as 78%. Once again, we are reminded that the devil resides in the …
The new wave of startups is changing the landscape of the internet. As emerging technologies like blockchain are making their way into the mainstream, Web3 startups are becoming the future of the decentralized internet. Web3 is the next generation of the World Wide Web. It is characterized by its decentralized nature, using peer-to-peer networks and …
