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.

Largest VC investments of Q3 2024: Waymo, Anduril, and SSI raise billions

Globally, venture funding has been going through a downturn. Crunchbase reports that venture funding in Q3 2024 was down 15% on a year-on-year basis. This trend underscores the lack of liquidity that has been plaguing private equity for the past few years. However, that has not stopped illustrious startups such as Waymo, Clio, and Helsing … Continued

Section 409A: Impact on LLC Incentive Compensation?

Section 409A of the Internal Revenue Code (IRC) deals with certain deferred compensations. Most businesses know that they need to get a valuation if they want to issue employee stock ownership plans (ESOPs). However, the Section also deals with non-stock deferred compensations like bonuses and performance-linked incentives. So, even limited liability corporations (LLCs) that cannot … Continued

Top 5 Reasons to Hire Business Valuation Experts

Knowing the true value of your business is the first step in preparing for its next big move. Some may view business valuation exercises as routing number-crunching needed for funding rounds and investor exits. However, it can offer far greater value. A professionally prepared business valuation report establishes a price point in share transactions and … Continued

Interview With Alessandro Cillario, Co-Founder and Co-CEO of Cubbit

Welcome to another series of founder spotlights with Alessandro Cillario, a prominent figure in the tech industry who is the co-founder and Co-CEO of Cubbit!  As businesses grow, their data management systems must scale without sacrificing performance or security. Organizations face numerous challenges in managing increasing volumes and complexity of data. Cubbit addresses data management … Continued

How do you handle equity dilution in a cap table?

Although the dilution impact on company valuation is positive, not all shareholders feel this way. To minimize this, they may want to exercise their anti-dilution rights, i.e., get more shares issued from the company. To help your investors decide whether to exercise anti-dilution rights, you must provide effective summaries of cap table dilution. In this … Continued

Understanding Stock Price Changes When a Company is Acquired

In May 2024, Johnson & Johnson completed its acquisition of Shockwave Medical offering $335 per share. On 26th March, when this deal first came to light, Shockwave Medical’s share price increased by 10.04%. Thus, acquisitions can cause significant swings in share prices.  When your company becomes the target of an acquisition, you, as a shareholder, … Continued

Interview With Borja Martel Seward, Co-Founder and CEO Roxom

In this edition of the founder spotlight, we feature Borja Martel Seward, Co-Founder and CEO of Roxom. This Argentinian-Spanish entrepreneur and angel investor emphasizes the importance of developing financial tools that leverage Bitcoin’s unique properties, aiming to create a 24/7 market. He believes that as Bitcoin becomes more integrated into global finance, platforms like Roxom … Continued

ASC 718 and the Tax Implications of Stock Option Exercises

Stock options have become an integral part of employee compensation packages because of the flexibility and tax benefits they offer for both employees and employers. The two key sets of accounting guidelines for stock options are ASC 718 and ASC 740. Adhering to terms and conditions ensures smooth audits and tax compliance. These accounting guidelines … Continued

Top 100 Y Combinator Companies

Y Combinator (YC) is a startup accelerator and fund. YC has made over 5,000 investments since 2005, including Airbnb, DoorDash, Stripe, Instacart, Dropbox, and Coinbase. The total value of YC companies exceeds $600 billion. YC offers training and services to help founders succeed throughout the life of their businesses. The fundamentals of launching a business … Continued

Interview with Dr.Yasmin, Executive Board Member at AidNexus

Welcome to this week’s edition of Founder Spotlight with Dr. Yasmin, an Executive Board Member at AidNexus who works on humanitarian aid LOB under Market Nexus. AidNexus is a humanitarian impact initiative created by Market Nexus Inc., a US-based company specializing in Web 3.0 B2B and G2B2G platforms. The initiative is deeply committed to alleviating … Continued

Benefits of Portfolio Valuation for Investment Managers

There is no static value or performance for the many investments that make up a portfolio. Many businesses employ investment management systems to pick and execute the best initiatives.  Whether you’re in the building industry, the oil and gas industry, the military industry, the technology sector, or any other sector, active portfolio management will guarantee … Continued

409A Refresh: What to Do Before Your 409A Valuation Expiration?

Suppose your company previously valued its stock at $10 per share on January 1, 2023. Following a Series A funding round on July 1, 2023, which valued the company at $20 million pre-money, the company conducted a 409A refresh. An independent valuation firm determined the new fair market value (FMV) to be $15 per share, … Continued

Interview With Marko Virkebau, CEO of Stargate Hydrogen

Welcome to another inspiring Founder Spotlight edition featuring Marko Virkebau, the CEO of Stargate Hydrogen. Stargate Hydrogen is a company at the forefront of green hydrogen technology. Stargate Hydrogen was Founded in 2021, aiming to produce affordable green hydrogen to help reduce carbon emissions in challenging sectors such as steelmaking, fertilizer production, and the chemical … Continued

Master Valuation Methods in Self-Paced Equity Management Courses Online

Equity management, which involves share acquisition, oversight, and even sale, is anchored on valuation. Assessing a business organization’s worth and its stock price is tedious. But investors have a way of working around this: valuation methods. These techniques can zero in on the real score of a company’s stocks. They can determine if a stock … Continued

How does a 409A Valuation Ensure Tax Compliance?

In the pursuit of hiring talented executives and conserving cash, stock options can lead to win-win situations for everyone involved. However, hefty penalties are involved when you do not comply with tax laws. With stock options, the tax liability depends primarily on the purchase price. You must derive this price by conducting a 409A valuation … Continued

Securing Safe Harbor Status for Fintech Startups

For centuries, safe harbors have given sailors respite from the most unforgiving seas. Today, the concept of safe harbors extends far beyond the seven seas. In the stock market, safe harbor assets help investors take shelter from market volatility. Similarly, in the winding and treacherous landscape of tax regulations, safe harbors offer certainty and stability. … Continued

Interview with Jesse van der Pluijm Co-Founder of WeTicket

Welcome to the latest edition of the founder spotlight interview with Jesse van der Pluijm, co-founder of WeTicket. Jesse and co-founder Nando Bennis were inspired to start WeTicket due to their experiences as event organizers. WeTicket was born out of a desire to challenge the “ticketing mafia” and promote transparency and fairness in the industry, … Continued

Is low valuation good for employees?

In the world of startups, founders often chase sky-high valuations to validate their success. However, high valuations can lead to disadvantages like overinflated expectations and increased risks of down rounds. Conversely, low valuations can lead to dilution of ownership in fundraising rounds and raise the risk of unfavorable acquisitions. One advantage of low business valuations … Continued

How Startups like Stripe are Handling the IPO Dry Spell?

Private equity investments, especially in startups, are notoriously illiquid. If a startup grows big enough, investors may breathe easy hoping for exits through initial public offerings (IPOs). However, trends are showing a significant decline in IPO volume and proceeds. Many startups are delaying their IPOs. This IPO dry spell has left investors searching for alternative … Continued

Interview With Dr. Evan Petkov, Co-Founder and CEO of Proptech Optiml

In this edition of Founder Spotlight, we’re featuring Dr Evan Petkov, Founder and CEO of Optiml, who aims to address the challenges of achieving Net Zero in the real estate sector. The inception of Optiml originated from Dr. Petkov’s PhD research at ETH Zurich, where he developed optimization algorithms that integrate profitability with sustainability considerations. Optiml’s … Continued

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