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Can You Lose Money if You Sell Treasuries Early?

Can You Lose Money if You Sell Treasuries Early?
Posted on Tue, 26 March 2024

A lot of startups are finding that, with interest rates going up, they have the opportunity to work with a cash management specialist who can then get them into very safe Treasury and corporate bonds, even packages or bundles of bonds. 

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What is a Secondary Stock Transaction?

What is a Secondary Stock Transaction?
Posted on Wed, 20 March 2024

Kruze Consulting COO, Scott Orn, explains everything you need to know about secondary stock transactions and why VC firms are buying founder shares.

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What is Pay to Play in Venture Capital?

What is Pay to Play in Venture Capital?
Posted on Tue, 19 March 2024

Kruze Consulting’s COO, Scott Orn, answers the question ‘what is pay to play in venture capital?’ helping startups to understand pay to play provisions.

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Should you cap commissions?

Should you cap commissions?
Posted on Sun, 17 March 2024

A question we get frequently from startup founders is should they cap commissions for their sales team? The reason they ask this question is because they get the financials we prepare at Kruze, and they are startled that the VP of Sales or a top salesperson is making more money than anyone else in the company.

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Should founders accrue payroll before VC funding?

Should founders accrue payroll before VC funding?
Posted on Sun, 10 March 2024

This particular scenario has happened in startups. You’ve started a company. You were used to getting a regular paycheck at your previous job, but right now there’s no money to pay yourself, but hopefully there will when you get funded. And at that point, you feel that you could “reimburse” yourself for all the paychecks you missed.

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What are SG&A expenses?

What are SG&A expenses?
Posted on Sun, 3 March 2024

Founders will hear the term “SG&A expenses” thrown around in board meetings a lot. SG&A stands for selling, general, and administrative expenses. One way to think of SG&A expenses is that it’s the cost of running your company.

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What is Founder Preferred Stock?

What is Founder Preferred Stock?
Posted on Sun, 25 February 2024

Founder preferred stock is a pretty new thing in the startup game. Historically, founders would always get common stock, usually in the form of founder shares that they received early on.

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How Do Founders Make Money?

How Do Founders Make Money?
Posted on Wed, 21 February 2024

Making money is important; it’s part of the startup journey and, especially for founders, you are taking a lot of big risks by starting a company from scratch.

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When Fundraising Should You Practice With Less Desirable VCs?

When Fundraising Should You Practice With Less Desirable VCs?
Posted on Sun, 11 February 2024

A piece of advice that we hear being given out a lot in the startup world is that, when your startup is fundraising, you should fine-tune your pitch by approaching less desirable or non-target venture capitalists first.

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Are Term Sheets Legally Binding?

Are Term Sheets Legally Binding?
Posted on Sun, 4 February 2024

Term sheets can be a little bit of a gray area in the venture capital/startup world since certain elements, such as the confidentiality agreement, are legally binding.

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What Does the VP of Ops or COO At a Startup Do?

What Does the VP of Ops or COO At a Startup Do?
Posted on Fri, 2 February 2024

Scott Orn answers the question ‘what does the VP of Ops or COO at a startup do’ with a breakdown of their roles and their responsibilities.

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Downround Guide: Understanding, Mitigating, and Navigating

Downround Guide: Understanding, Mitigating, and Navigating
Posted on Wed, 31 January 2024

Downrounds are happening and more as the startup ecosystem is grapples with the aftermath of the 2021 VC bubble and a depressed tech stock market. Here is a practical guide on how to deal with one.

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New R&D Tax Legislation: What Startups and VCs need to know

New R&D Tax Legislation: What Startups and VCs need to know
Posted on Tue, 23 January 2024

Congress is working on a tax package (called the Smith/Wyden tax package) that could revive key tax provisions, including the deductibility of research and development expenses.

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Why Revenue Visibility Matters for Startups

Why Revenue Visibility Matters for Startups
Posted on Sun, 21 January 2024

We always encourage revenue visibility to startup founders and it matters for a couple of big reasons, both inside and outside of the company.

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What Startup's Accounts on the Balance Sheet Need to be Reconciled

What Startup's Accounts on the Balance Sheet Need to be Reconciled
Posted on Mon, 15 January 2024

The punch line here is that every single account on the balance sheet needs to be reconciled, not just the bank and the credit cards.

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✨ AI-driven question and answer tool with Kruze's Extensive Startup Accounting And Finance Knowledge Base
This is an experiential tool. Do not rely on these responses, always consult with your CPA, tax advisor, accountant or lawyer.

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