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Kruze consulting Blog - Page 5

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Latest Posts

What Are Capital Expenditures for Startups?

What Are Capital Expenditures for Startups?

Capital expenditures, otherwise known as CAPEX, are mentioned in startup board meetings all the time. It’s definitely a fundamental term to understand when dealing with startup accounting.
Published on Wed, 10 April 2024
What’s the difference between primary and secondary shares at a startup?

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.
Published on Thu, 4 April 2024
How are Startup Employee Strike Prices Set?

How are Startup Employee Strike Prices Set?

It’s a common question: Does the startup board have any flexibility when it comes to setting the strike price for options?
Published on Tue, 2 April 2024
Bookings vs Revenue vs ARR

Bookings vs Revenue vs ARR

At Kruze Consulting, we get tons of questions about the difference between bookings, ARR and revenue.
Published on Mon, 1 April 2024
What are Your VC’s Return Expectations Depending on the Stage of Investment?

What are Your VC’s Return Expectations Depending on the Stage of Investment?

It is incredibly important that startup founders know what their VCs are going for so that they can be aligned and make smart decisions.
Published on Fri, 29 March 2024
Can You Lose Money if You Sell Treasuries Early?

Can You Lose Money if You Sell Treasuries Early?

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. 
Published on Tue, 26 March 2024
What is a Secondary Stock Transaction?

What is a Secondary Stock Transaction?

Kruze Consulting COO, Scott Orn, explains everything you need to know about secondary stock transactions and why VC firms are buying founder shares.
Published on Wed, 20 March 2024
What is Pay to Play in Venture Capital?

What is Pay to Play in Venture Capital?

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.
Published on Tue, 19 March 2024
Should you cap commissions?

Should you cap commissions?

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.
Published on Sun, 17 March 2024
Should founders accrue payroll before VC funding?

Should founders accrue payroll before VC funding?

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.
Published on Sun, 10 March 2024
What is Founder Preferred Stock?

What is Founder Preferred Stock?

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.
Published on Sun, 25 February 2024
How Do Founders Make Money?

How Do Founders Make Money?

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.
Published on Wed, 21 February 2024
When Fundraising Should You Practice With Less Desirable VCs?

When Fundraising Should You Practice With Less Desirable VCs?

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.
Published on Sun, 11 February 2024
Are Term Sheets Legally Binding?

Are Term Sheets Legally Binding?

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.
Published on Sun, 4 February 2024
What Does the VP of Ops or COO At a Startup Do?

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

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.
Published on Fri, 2 February 2024
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