Startup Venture Capital Assistance

Experienced Finance and Accounting for Startups

Our clients have raised over $5.5 billion in venture and seed financing, and our team knows how to navigate the VC diligence process.

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Scott Orn and Healy Jones Kruze COO and VP, former VC's
Scott Orn
Kruze COO, former VC
Healy Jones
Kruze VP, former VC

The Accounting and Finance Team for Funded Startups

Companies raising venture capital require professional books and specialized financial advice. Because Kruze Consulting only works with funded startups, we know what numbers and advice you and your investors need.

Startups with VC funding need processes and systems to regularly report on the company’s financial position. Kruze produces Monthly Financials, Burn Rate Analysis, Cash Runway Analysis, Budget to Actuals and Variance Reports that are perfect for venture capital partners and board meetings. Startup founders who have raised venture capital must have the strategic financial skills to carefully manage burn, growth, headcount and more. And founders need to be ready to raise the next round of capital when the time comes.

Kruze Consulting’s clients have raised over half a billion dollars in venture capita funding in the past 12 months alone, so we know what it takes to be ready for the next round. From the first day of our White Glove Onboarding Experience, we work to deliver accurate financial statements and to begin creating a due diligence folder where, together, we can retain important information that you’ll need during the next venture capital round’s due diligence. Startups should have rock solid financials and their diligence materials prepped before a VC meeting ever occurs. Fundraising moves incredibly fast and if you appear unprepared to the VC partner, it will affect your valuation and total capital raised. Work with Kruze, be prepared. Read our downloadable VC due diligence checklist here!

Ready to work with the startup venture capital experts at Kruze?

Contact us now

How to Finance Your Company

Oftentimes, startup founders think of venture capital as the first way to finance their companies. VC funding is indeed a great way to finance your company; however, other financing options are available. Also, as your business grows, your financing needs will change. Let’s explore other ways to finance your startup besides venture capital.

Top Ways to Finance Your Early-Stage Company

  • Bootstrapping: This is where you invest your own savings into the company
  • Bank Loans
    • 2 Different Types of Bank Loans: 
      • If you have not raised VC money, your bank loan will require a personal guarantee.
      • If you have raised VC money, you can raise Venture Debt with no personal guarantee.
  • Other Debt Options
    • More Aggressive Debt: From places like Shopify Capital, Stripe Capital, Fundbox
    • Independent Fund or business development company lenders
  • VC Investment Instruments
    • Convertible Notes
    • SAFE Notes
    • Preferred Stock
    • Common Stock

What are Convertible Notes?

Convertible notes often referred to as “converts,” are one of the most important securities used to fund early-stage startups.

While their popularity has declined some since the introduction of SAFEs, they continue to be one of the most common types of investments raised by seed-stage companies and are often used during Series A, Series B, etc. extension rounds.

Learn more about convertible notes or convertible debt.

What are SAFE Notes?

SAFE notes, or a simple agreement for future equity is really just a simplified version of convertible notes. 

  • Simple, Easy & Fast fundraising document for Angel & Seed Stage
  • Safe notes are more founder-friendly than convertible debt
    • No Interest Rate
    • No Maturity Date
  • Safe Notes convert at a future valuation - “The Cap”
  • Safe Notes are technically Equity 
    • However: some Safe Notes have a clause where those investors are paid back before other investors and founders - that kind of makes it debt
  • Uncapped Round: When Safe Note’s have no valuation and  investors convert at The Cap in the next round (not advisable) 
  • Be Careful: Stacking Safe Notes can surprise founders by the amount of dilution they pile up

What is Preferred Stock?

Preferred stock or preferred equity is a share class. Venture capitalists like to invest in preferred stock because it comes with many attractive rights and privileges vs. common stock. And those benefits make them willing to pay up and pay a higher valuation for the preferred stock.

Benefits of Preferred Stock:

  • Liquidation preference - these days, it’s typically 1X. (they get their money back before Common Stock participates)
  • Ability to block a big decision just by voting as a share class. 
  • Redemption rights 7 to 10 years out
  • Accruing Dividends (Cumulative & Non-Cumulative)
    • Non-Cumulative is more friendly to founders and employees

Preferred Stock vs. Common Stock:

  • Venture Capitalists don’t invest in common stock; they invest in preferred stock.
  • Common stock is typically owned by employees and the founders
  • The Founders shares and Employee stock are usually in common stock
  • In the beginning, the Par Value of Common Stock is very low
  • Common stock will always be at a discount compared to preferred stock 

What is Common Stock?

Common stock is typically the share class that the founders and employees have in a startup. When the company gets incorporated, the first share class that’s issued is common. Typically, the founders get a significant percentage and carve out a stock option pool which the employees get. They also determine the par value or the price it is worth on paper. This is usually like 1/100th of a share. Common stock is worthless at first because you haven’t built anything yet. However, that is the perfect time for founders to buy their shares and for early-stage employees to exercise their shares.Common stock goes on your balance sheet and in your equity session. Common stock is always cheaper than preferred stock. It’s what the founders get, it’s what the employees get, and it’s what stock options come in. So it is an excellent way for people to have ownership in the startup. 

Common Stock Simplified:

  • First stock issued when a company incorporates
  • Share class that the Founders and Employees share in the startup
  • The Par Value of Common Stock is super low to start. 
  • When you exercise your options, don’t forget to file an 83B and check with the CPA about personal tax filing.
  • Preferred Stock is what Venture Capitalists ask for when they invest
    • Preferred stock has a liquidation preference
  • Stock options are granted in common stock.
  • 409A valuation is required to validate the price of common stock 
  • As a company gets closer to a significant acquisition or IPO, the cost of common & preferred get closer

AFFORDABLE STARTUP BOOKKEEPING AND ACCOUNTING

Check out Kruze's affordable monthly bookkeeping options. 

Monthly Company Expenses

Monthly costs vary based on your needs and company expenses.

$5,000
monthly startup expenses
Basic Bookkeeping

Ideal for angel funded companies

Starting at $325 per month

  • Dedicated Bookkeeper
  • Operations in 1 State
  • No HR Services
  • No State Tax Compliance
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Founder Timesaver

Great for busy founders

Starting at $425 per month

  • Dedicated Accountant
  • Operations in 2 States
  • HR Services Available
  • State and Local Tax Compliance
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Premium

Ideal for high-growth, well-funded businesses

  • Controller or Fractional CFO
  • Multiple States, International
  • HR Services Available
  • State and Local Tax Compliance
  • Complex Revenue Recognition
  • Custom Reporting

About Us

A CPA Firm Specialized in Startup Accounting & Finance

A CPA Firm Specialized in Startup Accounting & Finance

Startups are our niche, and our passion. Our clients have raised over $5.5 billion in venture capital financing. We are one of only a few outsourced accounting firms that specialize in funded early-stage companies - we only offer financial and tax services to fast growing startups in the Seed, Series A, Series B and Series C stages.

The Right Accounting Partner for Your Startup’s Next Round

The Right Accounting Partner for Your Startup’s Next Round

We know how to de-risk your startup’s next venture capital round. Our team makes sure you are ready to fly through your next VC’s accounting, HR and tax due diligence. And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising.

A Leader in Cloud Accounting Software

A Leader in Cloud Accounting Software

Our practice is built on best of breed cloud accounting software like QuickBooks, Xero, Netsuite, Gusto, Zenefits, Expensify, Avalara, Brex iand Bill.com. Technology makes us more efficient, saving our clients money and letting us offer higher value services like FP&A modeling, 409A valuation and venture debt consulting. Startups deserve to work with CPAs using modern software.

Trusted by Top Venture Investors

Trusted by Top Venture Investors

Top angel investors and VCs refer Kruze because they trust us to give the right advice. Our clients are portfolio companies of top technology and Silicon Valley investors, including Y-Combinator, Kleiner, Sequoia, Khsola, Launch, Techstars and more. With us, your books and taxes are in order when it’s time to raise another round of venture financing.

What types of startups does Kruze Consulting usually work with?

What types of startups does Kruze Consulting usually work with?

Kruze Consulting works with a variety of funded Delaware C-Corps, but the majority of our companies have secured Seed, Series A, Series B and Series C. We look to partner with our clients, going beyond the typical outsourced accounting relationship and seeking to provide a higher level advisory role. We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.

Accounting, Finance, Taxes, & Payroll all in one solution

Accounting, Finance, Taxes, & Payroll all in one solution

Startup CFO services, startup accounting and bookkeeping services, startup annual taxes, expense reports, payroll, benefits: we've got you covered. Our software provides custom tailored dashboards that can be provided weekly or monthly, depending on your preference and plan. Founders are often so busy building their company that they don’t have time to take care of their finances. Traditionally, these companies have had to work with a basket of people to get their work done, including bookkeepers, accountants, AP clerks, CFOs, consultants, and tax accountants. At Kruze Consulting, our founders have one point person, saving time and money.

Client testimonials

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We're huge fans of Vanessa and the folks at Kruze Consulting. They set up our books, finances, and other operations, and are constantly organized and on top of things. As a startup, you have to focus on your product and customers, and Kruze takes care of everything else (which is a massive sigh of relief). I highly highly highly recommend working with Vanessa and her team.

Vivek Sodera

Vivek Sodera

Co-Founder @ Superhuman

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As a startup, moving quickly is a top priority for us and we just needed to get our tax return done. After we uploaded our docs, we got our tax return in 3 days! E-filing was confirmed by Day 4. Super responsive and helpful!

Casey McKerchie

Casey McKerchie

VP, Operations of Calm.com

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Avochato has been growing rapidly in the past year – in fact, too quickly for us to keep up with books, taxes, and budgeting for growth. Partnering with Kruze Consulting has been fantastic to manage, track, and analyze our finances while we continue focusing on building our customer base. Kruze’s team knows what startups need.

Alex De Simone

Alex De Simone

CEO @ Avochato

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Everybody, go to Kruze Consulting. They do a great job. I personally can tell you, they've done a great job for our companies, including Calm.com. I'm sure they’ll do a great job for you.

Jason Calacanis

Jason Calacanis

Angel investor

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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

Chris Mansi

CEO @ Viz.ai

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Kruze Consulting is the perfect Accounting, Finance and Tax partner for Los Angeles Startups. Kruze delivers exceptional monthly reporting and financial projections. When we need help with benefits or payroll, Kruze solves our problems. Kruze does our taxes for a fraction of what previous accountants have charged. Thank you Kruze for being a great partner.

Brett O'Brien

Brett O'Brien

CEO @ FLYR

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Being a repeat tech entrepreneur, I know how challenging it is to find the ideal CFO - not only is it often expensive to find the right one, but CFOs who combine expertise with scrappiness, market vision and perspective with detail orientation and 'roll up your sleeves' execution is near impossible for an early stage company. So I've been thrilled to work with Kruze Consulting, who not only provide all the ideal characteristics of a top-tier tech CFO, but also live and breathe entrepreneurship themselves. I've known Scott and Vanessa for many years and their deep personal integrity and strong reputation in the industry and made it an easy decision to work with them again.

Tina Fitch

Tina Fitch

CEO @ HobNob

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NIH, NSF, and SBIR grant compliance can add a lot of overhead for a start-up. The Kruze team makes it easy, so we can spend our time growing the business instead of shoveling paperwork.

Charlie Silver

Charlie Silver

CEO @ Mission Bio

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As a startup, it’s incredibly important to keep track of where our money is coming from and where it’s being spent. Kruze Consulting really helps keep our books and taxes in order so that we can focus on the core business. Extremely responsive and very professional, the accountants at Kruze Consulting are a pleasure to work with. We’d highly recommend their services.

Peter Lai

Peter Lai

CEO @ Emburse

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Prior to Kruze, as a remote-first team, we were weighed down by a lot of the bureaucracy involved with having a distributed workforce. 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

Zack Fisch

Pequity's Head of Operations & Legal

Consulting, Tax and Valuation Prices

Competitively priced for high-growth companies

See our monthly pricing plans

Financial Consulting

Staff Accountant $85
Senior Staff Accountant $110
Controller $140
Junior Financial Modeling $175
Financial Modeling $400
Venture Debt $400
CFO $350
Tax Advisory $395

Startup 409A Valuation

Seed $2,000
Seed A $2,500
Seed B $3,000
Seed C $3,500

Contact Us for a Free Consultation

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