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 …
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 …
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 …
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 …
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 …
Startups looking for venture capital and angel investment should look into 83(b) elections. 83(b) Election can help you save a lot of money in the long run, and it’s generally one move that startup founders should consider. Before making the decision though, it’s important to understand what 83(b) Election is, how it works, and how …
Choosing a business entity is one of the most important legal decisions an entrepreneur makes when starting a new company. With the numerous advantages, it provides to the entrepreneur, the Limited Liability Partnership (LLP) is gaining favor. A limited liability partnership (LLP) is a type of business entity that combines the limited liability of a …
In this client spotlight, we got the chance to interview Brian Hutchins, CEO of Waitlist Me. With almost 20 years of experience working with several successful startups in internet marketing and product management, Brian shares how solving a problem can become a great product for a new business. What’s your story? Can you tell us …
There is no easy way to raise money for a new company. The process of raising capital can take months or even years for some businesses, while for others, it can be completed in a matter of weeks or even days. Many people look for outside funding to meet their needs, while others try to …
In the corporate world, venture capitalists have a vast network of contacts. These relationships may be beneficial to the growth and success of start-ups since they assist the startup in forming alliances with potential consumers or commercial partners. Venture capitalists seek a competitive advantage in the market: they want their portfolio companies to be able …
Getting the value of intangible assets can be quite challenging. One such intangible asset is software, which many tech startups and developers have a hard time putting a price on their work. These developers and companies often receive offers to have them sell their software. In this situation, it is important to get a software …
Cap tables are an essential part of a company. Most companies have their cap tables in spreadsheet view in Excel, and include details about the potential new funding sources, mergers and acquisitions, public offerings or other transactions. Private companies use this table to deliver information on a company’s investors and market value. Spreadsheet View …
There are 6 types of investors for startups for those in need of start-up capital. Friends and relatives, crowdfunding, accelerator programs, angel investors, and venture capitalists are some of the available funding sources. Investments are made by each organization at different times and with varying amounts of money. There are several factors that will need …
Hello everyone, on this edition of our employee spotlight series we’ve Grace Dandan who joined our team a couple of months back. She is currently working at Eqvista as an editor, assisting the marketing team in creating and publishing engaging content. Hello Grace, it’s wonderful to have you in this blog interview. First of all …
We are excited to announce that Eqvista has partnered with Choco Up, a revenue-based financing platform, to offer more services to our clients! Through this partnership, Eqvista and Choco Up clients can receive special discounts across our various services. We aim to provide simple yet efficient financial solutions for companies and individuals. About Partnership Through …
With a 409A valuation, private firms must first assess their common stock’s “fair market value” (FMV). The recognized current worth of one share of a private company’s common stock is known as fair market value. It shows how much the stock would be worth if it were traded on the open market. Thinly traded securities …
The holidays are fast approaching and we are close to saying farewell to 2021. We at Eqvista would like to wish you and your family a Merry Christmas and Happy New Year! It has been a pleasure working with you this year. Before the year ends, the Eqvista team would like to thank all our …
There are different rules when it comes to issuing shares and company stocks to US contractors and US consultants. They are both third parties but they play big roles in a company’s development. For most companies, especially startups, they offer stocks to contractors and consultants to give them some ownership of the company. By doing …
Receiving equity compensation is a great benefit for a lot of employees, but most don’t know which equity compensation plan is the best for them. Stock options, restricted stock and restricted stock units, stock appreciation rights, phantom stock, and employee stock purchase plans are the five primary types of individual equity compensation programs. There are …
Hello everyone, on this edition of our employee spotlight series we’ve Edison Chan who joined our team a couple of months back. He is currently working as a valuation analyst, helping clients conduct financial analysis, perform valuations and manage the equity for their company. Hello Edison, it’s great to have you on our employee spotlight …
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