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services to startup companies. Our blog is the best place to learn about valuation, equity, and the Eqvista product.
A capitalization table known as a cap table is a financial spreadsheet typically used in startups to manage the equity in the company. While dilution refers to a reduction in an ownership percentage interest in the company. In essence, dilution occurs when new shares are issued, decreasing the percentage ownership of each share. In this … Continued
The face value of preferred shares is set by the issuing firm, although it is essentially an arbitrary price. Because preferred shares offer consistent dividends but lack voting rights, they often trade for a lower price than common shares in the same company. The preferred stock is convertible into common stock and will increase in … Continued
A stock purchase plan is a type of employee benefit which offers employees the opportunity to buy company shares on an employee stock purchase plan at discounted rates. Since it’s good for both companies and employees, ESPPs are used widely throughout organizations in various industries. At Salesforce, they encourage our employees to participate in this … Continued
We had a quick chat with Maria Worley, an attorney and founder of Start.law, P.C. Maria maintains an active practice focused on supporting startups with a social impact. She shares her journey of making legal counsel easily accessible for startups by creating a virtual law firm. What’s your story? What excites you about your industry? … Continued
Business founders utilize their own funds, assets, and revenues to fund their company under a bootstrapped financing strategy. The bootstrapped company strategy keeps the founders out of debt and helps them to maintain track of their expenses. This technique is distinct from the financing model, which involves investors investing in a company in return for … Continued
A company must constantly make more money than it is spending to be sustainable. Managing the cash burn rate is as important as making sure you bring in enough new revenue for your business to survive. This article will provide you with some helpful tips on maintaining a company’s sustainability by managing the cash burn … Continued
In this edition of our employee spotlight series, we talk to Wesley Oh, who joined our team as a valuation analyst mainly responsible for onboarding clients to the Eqvista platform and performing valuation analysis. Hi Welsey, it’s great to have you in this interview. Firstly, congratulations on your new role! Can you briefly introduce yourself? … Continued
Direct Stock Purchase Plan (DSPP) enables investors to purchase Starbucks shares directly from the company and at a price that is subject only to daily fluctuations in the market prices. In short, the Direct Stock Purchase Plan in Starbucks is a plan that allows investors to purchase shares of Starbucks directly from the corporation. In … Continued
We realize how difficult it is to evaluate early-stage companies, scaleups, or startups; therefore, we created a startup valuation calculator. Risk factors show a high level of uncertainty, multiples are calculated using comparable transactions, and applied models adjust for exits. Furthermore, dilution from subsequent rounds, the lack of key data on multiples, and many other … Continued
The outbreak raises awareness of online education; this might be a watershed moment for the industry, ushering in higher use of this format and shifting attitudes toward how children learn and teachers educate. The education industry has seen tremendous growth in the past few years, where learning has now become more creative and innovative. Earlier, … Continued
A startup’s venture capital cap table can initially be fairly simple, consisting solely of the founders and/or the first few workers. However, when the company’s staff base grows and additional outside investors become involved, the situation can quickly become more problematic. As a result, a cap table must be employed and maintained to determine the … Continued
We are honored and excited to announce that Eqvista has won Best Equity Management Software US 2022 at this year’s World Business Outlook Awards! This award would not be possible without the continuous support and trust of our clients. The World Business Outlook Awards recognize industry masters, leadership talents, and potential for international growth. After … Continued
A 409a valuation is important because it establishes the fair market value of your company’s shares in writing. A 409a valuation, if done correctly, can help you comply with tax regulations and avoid unnecessary IRS audits that could lead to major problems down the road. Perhaps even more importantly, a 409a valuation provides your management … Continued
People who are new to the idea of cap tables often have many questions, and it can be hard to get answers from their limited knowledge base. You may find yourself on a constant hunt for people with the same or a similar question in order to just get an answer. To help with this, … Continued
The term “409A value” is derived from Section 409A of the United States Internal Revenue Code, which governs nonqualified deferred compensation schemes (e.g., stock options). The legislation compels private corporations to set an exercise price for their stock that may never be less than the FMV of the underlying stock on the date the stock … Continued
Funding rounds are key milestones in the startup investment lifecycle. A funding round refers to a form of investment in a company that takes place when investors put in money to help fund the company. Series B rounds are the second round of funding for a company and are often called the “second series”. It … Continued
Series A Funding is often seen as the best opportunity to get a startup off the ground. It’s the first venture round with significant capital and usually occurs after seed funding rounds have taken place. So, what are the highest values of Series A Funding in Q1 2022? In this article, we will run through … Continued
Seed funding is the initial influx of cash given to a startup, usually in exchange for an equity share in the company. Higher seed funding levels can help a company gain a competitive edge in the startup market. In this article, we will look at what exactly is seed funding, along with the companies that … Continued
Startup valuation is a tricky affair. Unlike mature businesses, early-stage startups don’t have any results to show in terms of profit. It takes time for an idea to mature into a profitable business. But this does not limit their need for investments. Growing startups need the right amount of funds to burn and support their … Continued
Almost all M&A transactions are motivated by growth. The ultimate objective is to develop the business, whether the stated purpose is to enter a new market, add additional goods or service lines, obtain access to new technologies, or raise market share. Understanding this from the start will help you better understand the M&A process and … Continued
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