Latest Posts
Beware of using deal structure to protect your startup’s valuation
A hot topic today with venture capitalists and entrepreneurs is the danger of using deal structure to protect your startup's valuation. We see this happening all too often, so let’s take a look at it.
Published on Sun, 24 November 2024
What does the term default mean in finance?
In the startup world, being in default is not a happy place to be. Being put into default occurs when your startup has borrowed money but can no longer repay the loan.
Published on Sun, 17 November 2024
What is an Acquihire?
‘Acquihire’ is a term used to describe the act of a larger, more successful company buying a startup company that, while it may have developed good technology or has a great team, didn’t quite make it.
Published on Sun, 3 November 2024
What is a credit facility?
When you’re launching a startup company, there’s often points where you realize you need extra capital.
Published on Sun, 27 October 2024
Who pays for directors and officers liability insurance at a startup?
Who pays for the liability insurance of directors and officers at a startup? This question came from someone joining a board of directors who was concerned that they were going to have to pay for it out of their own pocket.
Published on Sun, 20 October 2024
What is a guarantor?
Essentially, a guarantor is someone who guarantees a loan or debt obligation for a company by offering their own assets as collateral.
Published on Sun, 13 October 2024
Outstanding Shares vs. Authorized Shares
Especially when dealing with option pools or understanding the proceeds to common stock from acquisitions, our accounting and advisory team has found that founders can have a lot of questions about the differences between outstanding shares and authorized shares.
Published on Mon, 7 October 2024
What is retained earnings?
Retained earnings are found on your balance sheet. There will actually be a line item called retained earnings and that will be buried in the equity section.
Published on Sun, 6 October 2024
What is capital under management?
Simply put, 'capital under management' in the world of venture capital refers to the total amount of funds that a venture capital firm has raised across all its investment vehicles.
Published on Sun, 29 September 2024
Guy Kawasaki Pitch Deck: The Ultimate Guide
At Kruze Consulting, we've advised startups that have collectively raised over $15 billion in venture capital funding. One tool we've found consistently effective is the Guy Kawasaki Pitch Deck template.
Published on Tue, 24 September 2024
What is your startup’s cash position?
Put simply, your startup’s cash position refers to the amount of cash you have on your company’s balance sheet or in your bank accounts.
Published on Sun, 22 September 2024
Negative Balances On Balance Sheets: A Warning Sign
As accountants, we inevitably get asked questions about finance all the time, and that’s great! However, it’s never fun when we have to explain to someone that their accounting is messed up. Unfortunately, having negative balances is one of the classic tells of accounting problems.
Published on Sun, 15 September 2024
What is a Bullet Loan?
A bullet loan (also called a balloon loan) is a slightly different type of loan that a startup can receive, and it’s a little bit unusual.
Published on Sun, 8 September 2024
What Are Venture Debt Covenants?
In the startup world, covenants are a standard part of a venture debt term sheet and we tend to think of them as the “rules of engagement” when it comes to taking on things like venture debt and leases.
Published on Sun, 1 September 2024
Reconciling Accounting Software Against Bank Statements
What should you do if you are unable to reconcile your accounting software against your bank statements? This is far from an ideal position to be in. But don’t panic – it might have an easy fix.
Published on Sun, 25 August 2024
