Series A Financing in 2023 and 2024
It’s become more difficult for startups to raise a Series A. Here is data behind what it takes to get a round done in 2024.
What Happens to Venture Debt in a Downround?
When a startup goes through a downround, things can be very painful. Typically a downround will impact the founders a lot more than the venture capital investors , but if your startup has venture debt then things could become even more difficult. So what happens to venture debt when a startup goes through a downround, and what can you do at your company to work through that happening?
Why Do Startups Need a 409 Evaluation
The IRS wants you to have a 409A valuation so they can make sure that your common stock options have the appropriate strike price.
Why Do Lenders Ask For Deposits on Venture Debt Deals?
Deposits are an important part of venture debt. It’s normal for part of the deal to require you send the lender, say, $20,000-$30,000. So why are deposits required by your lender when you sign a venture debt term sheet?
What’s the difference between primary and secondary shares at a startup?
Kruze Consulting’s COO, Scott Orn, identifies the key differences between a startup’s primary and secondary shares and what happens when they are sold.
Warrant Coverage Venture Loans
The rationale for a warrant coverage or a little bit of equity upside for the lender is that they’re taking a lot of risk here.
How do venture debt overhangs affect equity funding?
Venture debt overhangs are an issue we are seeing more often, and they are frequently blocking the next equity funding round for startups.
How should a startup account for its first revenue?
Kruze Consulting’s COO, Scott Orn, discusses how a startup should account for its first revenue (and ongoing revenue) before looking for more!
How do venture capital firms make money?
A guide to the business model of a venture capital firm and how they make money. Important insight into how venture capitals firms make money.
Off Balance Sheet Items and Startups
Off balance sheet items are usually spoken of in hushed tones when public companies crash and burn, usually in the haze of opaque financial disclosures.
The Corporate Transparency Act: Startups and Beneficial Ownership Information Reporting
Compliance with regulatory requirements is crucial for the success of any business, but startups, with limited resources, need to be particularly careful.
A Guide to Tax Returns for Seed-Stage Startups
The ultimate tax season guide for startups, by the leading tax CPA to startups. Kruze has filed thousands of tax returns; we answer the top tax questions.
What should you do if your startup’s valuation is too high?
After the booming startup market of the last few years, the valuation of many startups has gotten too high.
VC Funds: Ratio of Distributions to Paid-in Capital
The ratio of distributions to paid-in capital (DPI) is used to measure the total capital that a venture capital fund has returned to its investors. It’s calculated by dividing the cumulative distributions by the amount of capital invested in a VC fund.
Can Founders Pay Themselves Through an LLC?
While startup founders can pay themselves through an LLC, the Internal Revenue Service (IRS) doesn’t particularly like it. If you’re a founder considering this option, you should know that you may get extra attention from the IRS.
Startup CEO Salary Calculator
US Based Companies that have raised under $125M
Top Articles
-
Pre-Seed Funding + Top 20 Funds
-
eCommerce Accounting
-
Accounts Receivable Loans
-
What is the 2% and 20% VC fee structure?
-
How much does a 409A valuation cost?
-
What are Your VC’s Return Expectations Depending on the Stage of Investment?
-
Fractional CFOS
How much can your startup save in payroll taxes?
Estimate your R&D tax credit using our free calculator.
r&d tax calculatorSignup for our newsletter
Popular pages