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.
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.
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.
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.
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.
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.
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.
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.
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.
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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$250M+ VC Funding Raised
"I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup’s books and finances. If you are going to raise venture capital, you need experts like Kruze."
Chris Mansi
CEO
Startup Venture Capital Assistance
With former venture capitalists on staff, our team is here to help you navigate the fundraising process and manage your board of directors
Scale Remote Operations & Team
"Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located"
Zack Fisch
Head of Operations & Legal
Clients who have worked with Kruze have collectively raised over $15 billion in VC funding.
We set startups up for fundrising success, and know how to work with the top VCs.
Experienced team helping you
Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience.
Grew from a 2-person startup to a NASDAQ listed public company.
"The Kruze team helped us grow from a 2-person startup to a NASDAQ listed public company in 2 years. We wouldn’t have gotten public without Kruze’s support. Anyone thinking of launching a startup should make Vanessa their first call!"