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Downround Guide: Understanding, Mitigating, and Navigating

Downround Guide: Understanding, Mitigating, and Navigating

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.
Published on Wed, 31 January 2024
New R&D Tax Legislation: What Startups and VCs need to know

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

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.
Published on Tue, 23 January 2024
Why Revenue Visibility Matters for Startups

Why Revenue Visibility Matters for Startups

We always encourage revenue visibility to startup founders and it matters for a couple of big reasons, both inside and outside of the company.
Published on Sun, 21 January 2024
What Startup's Accounts on the Balance Sheet Need to be Reconciled

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

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.
Published on Mon, 15 January 2024
What Data Should Startups Track When You Sign a New Customer?

What Data Should Startups Track When You Sign a New Customer?

There are some pieces of information startups should absolutely track when signing a new customer contract.
Published on Sun, 14 January 2024
83(b) Election - What to File and When?

83(b) Election - What to File and When?

Make sure that your company gets a favorable tax rate. Learn about the 83(b) election for shareholders as well as how and when to file. Read more.
Published on Tue, 9 January 2024
Series A Financing in 2023 and 2024

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.
Published on Mon, 8 January 2024
What Happens to Venture Debt in a Downround?

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?
Published on Sun, 7 January 2024
Why Do Startups Need a 409 Evaluation

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.
Published on Thu, 4 January 2024
Why Do Lenders Ask For Deposits on Venture Debt Deals?

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?
Published on Tue, 2 January 2024
Warrant Coverage Venture Loans

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.
Published on Tue, 19 December 2023
How do venture debt overhangs affect equity funding?

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.
Published on Sun, 17 December 2023
How should a startup account for its first revenue?

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!
Published on Fri, 8 December 2023
Off Balance Sheet Items and Startups

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.
Published on Sun, 3 December 2023
The Corporate Transparency Act: Startups and Beneficial Ownership Information Reporting

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.
Published on Sun, 26 November 2023
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