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.

Upgrade to Premium: Access Complimentary Cap Table Onboarding Services

Eqvista’s cap table management platform is a dynamic solution that empowers businesses to navigate the complexities of equity tracking. Operating at the crossroads of technology and finance,Eqvista offers an intuitive process to create, update and maintain cap tables.  Managing a Company’s Cap Table Accurately and Efficiently A thoroughly maintained cap table is a startup’s guiding … Continued

Top 10 Seed-Funded Startups in Q2 2023

The startup ecosystem is constantly evolving, and Q2 2023 has seen the emergence of several innovative startups that have secured seed funding to fuel their growth. In this article, we will take a closer look at the top 10 seed-funded startups of Q2 2023, their respective industries, and a brief description of their solutions. Top … Continued

How an LPA works in a VC fund?

A venture capital fund (VC fund) is a form of investment fund that makes investments in early-stage start-ups with high return potential but significant risk. In a venture capital firm, entrepreneurs fetch funds from high-net-worth individuals and institutional investors. After combining their financial resources, the venture capital company and investors sign a limited partnership agreement … Continued

What is a Stealth Startup?

There is cutthroat competition in the startup industry. Many startups fail miserably at a significant rate. A content site for startup founders, Failory, states that 10% of new businesses fail in the first year. This statistic is astounding, and many business owners ultimately fail to surpass it. Occasionally, people opt to form a startup that … Continued

How to Launch a Community-Led Startup?

Communities are the new superheroes of the startup world. Entrepreneurs and businesses are discovering that building a community first is the quickest method to introduce and market their product to an existing audience. Building a community first is the secret to success. This is demonstrated by businesses like Clubhouse, TikTok, and Stack Overflow, where engineers … Continued

10 Simple Ways to Save on Taxes as a Startup

For founders, startup taxation is one of the biggest sources of stress. Many can relate if you’re a new business owner who can’t afford an accountant but still has to deal with the dreaded task of filing your company’s taxes. Unfortunately, you can’t avoid dealing with this issue. Due to the enormous yearly cost of … Continued

A Beginner Guide to Financial Securities: Types and Features

Oftentimes, when we hear the word “financial securities” we tend to associate that with shares, but the list goes on and includes several additional financial instruments. Financial security, in basic terms, can be any financial instrument that has a monetary value such as stocks, bonds, mutual funds, options, etc. Basically, in the financial world, security … Continued

Understanding Terminal Value: The Key to Accurate Valuation

Companies often don’t plan on shutting down after just a few years. They anticipate their success will last forever. Terminal value is a discounting method used to estimate a firm’s future worth and apply it to the current pricing. Financial tools that depend on terminal value include the Gordon Growth Model, Discounted Cash Flow (DFC), … Continued

How much equity should you give your startup advisors?

Founders of early-stage startups frequently consult with advisors. These advisors are typically successful entrepreneurs who enjoy giving back to the startup community. While their motivation for assisting may not be primarily commercial, advisors usually anticipate receiving a small equity grant. This equity grant may be the first non-founder equity issuance for some startups, which can … Continued

Important Business Valuation Metrics For Your Company

Investors use business valuation metrics to find companies they think the market has undervalued. This approach to investing is based on the idea that the market overreacts to both positive and negative news, causing stock price changes that do not reflect a company’s long-term merits and providing an opportunity for profit when the price falls. … Continued

Top 10 Series A Funded Startups in Q2 2023

The startup ecosystem has been buzzing with activity in the second quarter of 2023, with a flurry of Series A funding rounds taking place. These startups are leading the way in their respective industries, pushing boundaries, and solving real-world problems. Here are the top 10 startups that have caught our attention. Top 10 Startups of … Continued

When is the best time to exercise stock options?

Employee stock options are valuable because they are options, and you have a choice to exercise. It is useful that you have a long period of time to choose whether and when to purchase your employer’s shares at a set price. Because you no longer have discretion over whether or not to exercise, your stock … Continued

Largest Series B Funding Rounds in History

Securing capital for a new venture is a multistep concept. Even if a firm can get by on the founders’ own money, it may still need to seek outside investment. It is essential to have a working knowledge of how to raise finance. A lack of capital causes the failure of 30% of new businesses. … Continued

SAFE Note vs Convertible Note: All You Need to Know

You might have heard the terms SAFE note and convertible note in the context of investments. SAFE note or Simple Agreement for Future Equity is a type of instrument wherein the company shares or stocks are issued to the investor after a certain period. While a convertible note is a debt instrument that can be … Continued

Vesting: What it is and How it Works?

In the case of cessation of employment before the customary retirement age, vesting refers to transferring an employee’s unassignable rights to funds provided by an employer in a pension fund or retirement plan. Employers may grant employees stock options or shares in the business as part of their pay. This is an endeavour to persuade … Continued

Largest Series A Funding Rounds in History

Last Updated: May 2024 There is no quick or easy way to get equity capital for a business. If you’re successful, however, you’ll have the means to see your business through to its full potential. Series A fundraising rounds are very important to a startup’s development and eventual success. The Series A funding rounds follow … Continued

Importance of Rule 701 in Stock Options

The Securities and Exchange Commission (SEC) established Rule 701 to allow companies to issue stock options without the time & expense of registering the stock under the Securities Act. If a startup company is issuing stock or stock options, securities laws require those assets to be either registered or exempt from registration. Most private venture-backed … Continued

Why use Eqvista to issue and manage phantom stocks?

Phantom stocks, also known as phantom shares, simulated stock, or shadow stock, is a type of equity compensation in which corporate stock is issued to selected employees without any physical ownership. The phantom stock enables employees to have certain benefits of shares but with no actual ownership. The purpose of phantom stock is to eliminate … Continued

Top 10 Pre-Seed Funded Startups in Q1 2023

The pre-seed stage is a critical time for startups, as they work to validate their ideas and secure early funding. These top 10 pre-seed funded startups of Q1 2023 have shown great potential in their respective industries, and are poised to disrupt their markets with their innovative solutions. Top 10 Startups of Q1 2023 (Pre-Seed … Continued

Convertible Note Interest Rate: Everything You Need to Know

A convertible note is a financial instrument that is recognized as a hybrid of both debt and equity. Basically, it is a form of a debt instrument with a time-dependent conversion which can be converted into equity by the note holder. In basic terms, a convertible note is an alternative financial tool that allows a … Continued

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