Eqvista blog

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.

What do you need to know about our Compliance Service? (FAQs)

Intending to streamline and augment your equity management experience, Eqvista provides a suite of state-of-the-art services. We have designed our specialized platform to address the specific requirements of companies navigating the intricate subject of equity compensation. Whether you’re a startup looking to implement ASC 718-compliant stock option plans, fulfill Form 3921 reporting requirements, optimize tax … Continued

Equity Management in Times of Economic Uncertainty: Navigating the Challenges

When the economy is unstable, it is especially important for businesses to carefully manage their equity resources so that they may continue to thrive. Although downturns are usually shorter, they may nonetheless harm investors significantly. These economic cycles can also bring about prosperous times.  Since 1937, drawdowns linked with recessions have caused the S&P 500 … Continued

How to Manage Down Rounds Like a Pro?

In the unpredictable business world, knowing how to handle down rounds can make a big difference. It’s commendable that some companies not only survive tough times but actually become stronger. A downround is when a company’s value goes down during a funding round. It’s a tough situation, but if you know how to manage down … Continued

Founder Spotlight: Interview with Sergio Gonzalez, Co-Founder of Piper

Welcome to our Founder Spotlight Series edition; in this edition, we have a founder story who is shaping the future of sales with power-driven AI techniques. Thanks for joining us! Take a look at our latest interview with Sergio Gonzalez, the co-founder of Piper. Hello Sergio, great to have you on our Founder Spotlight series. Firstly, … Continued

Rise of the SaaS Marketplace: What It Is and Why It Matters?

The concept of “Software as a Service” (SaaS) dates back to the floppy drives and Windows 98 era. However, in the last 30 years, SaaS has expanded exceptionally. SaaS has to reinvent itself by merging its marketplace capabilities, and businesses need to use SaaS-enabled markets (SEMs) for growth, client acquisition, and competitive advantage. According to … Continued

Top Funded Startups in October 2023 (Pre-Seed, Seed, Series A and Angel Invested)

Startup capital is crucial for businesses at every point of their development. The subsequent allocation of these funds depends upon the development stage of each company’s business plan and its unique circumstances.  Top Pre-Seed Funded Startups in October 2023 When a business is pre-seed, it works hard to prove its concepts and get early investment. … Continued

Mobile App Valuation: How to Value an App in 2024?

The mobile app industry has witnessed significant growth in recent years, with businesses of all sizes investing in development to expand their reach and increase their ROI. Mobile app valuation is a crucial step for owners to assess the performance and potential of their applications. Mobile App Valuation  Valuing your mobile app is important when … Continued

Beyond Salaries: Crafting the Perfect Compensation Plan for Your Team

Attracting and maintaining top personnel is an ongoing issue for firms to maintain a competitive edge in today’s business world. Businesses must use an integrated approach consistent with their corporate culture, beliefs, and goals to establish a comprehensive pay plan that attracts their team members.  This article provides insight into designing the perfect compensation plan, … Continued

Interview with Shilki Eesha: Head of Operations and Compliance at Cheqly

Welcome to the Employee Spotlight Series. In this edition, we’ve Shilki Eesha, the Head of Operations and Compliance at Cheqly, a cutting-edge neobank dedicated to empowering startups and SMEs. As an integral part of the Cheqly team, Shilki has played a pivotal role in redefining how businesses handle their banking and finances, with a strong … Continued

Single-Trigger vs. Double-Trigger: Which is Right for Your Employees?

Determining employee incentives and the overall reward structure relies on decisions regarding employee equity compensation, such as vesting and triggering mechanisms. The single-trigger and double-trigger systems represent two approaches used in this situation. Each system provides distinct advantages and disadvantages, and the choice depends on various criteria, such as business culture, staff retention goals, and … Continued

SAFE/Convertible Note vs Priced Round

Funding rounds or investments in privately held companies often raise whether the company should use a SAFE and convertible note or priced equity rounds. Each option has unique effects, demanding careful analysis. SAFE notes are popular among startups and similar to stock options, as convertible notes are debt instruments with the right to convert into … Continued

Angel Investors vs. Venture Capitalists: Pros and Cons for Startup Founders

As the visionary behind a burgeoning enterprise, securing capital is likely top of mind. After all, it’s a critical component of bringing your business to life. In today’s world, we are fortunate to have an excess of options at our disposal, unlike in the past. Angel investors and venture capitalists are two distinct types of … Continued

Pros and Cons of Pay to Play in Venture Capital

A pay-to-play clause in a venture capital term sheet mandates that current investors participate in any upcoming funding rounds. This will specify a company’s valuation reset (often at a significantly lower value) and require each participating venture capitalist to invest pro rata. This article highlights the alternative structures of pay-to-play, the pros and cons of … Continued

How Do Startups Raise Capital?

Let’s say you’re launching a new company. You’re determined, passionate, and equipped with a brilliant action plan. Have you ever considered the cost of putting your plans into action? Investment cash is necessary for the launch of every firm, no matter how little. Access to capital gives your company projects a solid foundation, facilitating their … Continued

All You Need to Know About Partnership Buyouts

Partnership buyout financing is difficult to arrange for small and medium-sized firms that have never done so before. It is sometimes the last unavoidable resort to make a business work. There are several reasons why a buyout happens: the partner may be retiring voluntarily, or the conflict between the partners began affecting business operations. Keeping … Continued

Steps in Calculating Internal Rate of Return (IRR)

The internal rate of return (IRR) is a formula for estimating the rate of return on investment. The computation does not take into account external variables like the risk-free rate, inflation, the cost of capital, or financial risk, hence the name is “internal”. Ex-post or ex-ante applications of the approach are both possible. The IRR … Continued

How Does Sweat Equity Taxation Work?

Sweat equity is the exchange of labor for stock or a stake in the business. If you have any doubts, taxes are always due on sweat equity when you receive it or offer it, and you need to account for sweat equity taxation. Sweat equity is a valuable instrument that you may utilize to aid … Continued

How does Section 1202 benefit angel investors with 100% capital gain exclusion?

The IRS code Section 1202 is among the most significant advancements for startups in a long time, yet relatively few angel investors and business owners are aware of it. It may be a fantastic opportunity for angel investors and startups to develop their businesses. Tech entrepreneurs are issuing qualifying small company stock to grab the … Continued

Key Terms of Convertible Notes and SAFEs

SAFE and convertible notes are great choices accessible to startups needing pre-seed or seed capital. Startups use Convertible instruments to raise financing. Choosing the right one will depend on how well you grasp the Convertible and SAFE note terms and which suits your business better. Convertible notes and SAFEs are the same instruments, differing in … Continued

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