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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
A Guide to Tax Returns for Seed-Stage Startups

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.
Published on Thu, 23 November 2023
What should you do if your startup’s valuation is too high?

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.
Published on Sun, 19 November 2023
VC Funds: Ratio of Distributions to Paid-in Capital

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.
Published on Sun, 12 November 2023
Can Founders Pay Themselves Through an LLC?

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.
Published on Sun, 5 November 2023
Should Startup Founders Share Bank Statements Via Email?

Should Startup Founders Share Bank Statements Via Email?

With this question, there are different factors at play. There’s what we recommend and there is also what happens in reality when founders are busy and end up resorting to the quickest method.
Published on Sun, 29 October 2023
What Are Insured Cash Sweeps for FDIC Insured Deposits?

What Are Insured Cash Sweeps for FDIC Insured Deposits?

Insured Cash Sweep (ICS) accounts have been around for a while, but the recent Silicon Valley Bank (SVB) crisis has made a lot of founders look more closely at this banking option for their startups.
Published on Thu, 26 October 2023
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