Startup Valuation Blog

FEBRUARY 11, 2022

Looking for Financial Tips For Avoiding Startups Failure? . . The best way to do so is through a rigorous understanding of the financials involved in running a startup. Keep your dream alive with the following financial advice for startups. Analyzing hundreds of startups - here are financial pieces of advice for startups.

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Equidam

SEPTEMBER 29, 2023

Startups are unconventional by nature, so what makes for a useful comparison? Previously, we’ve covered what average forecasted growth looks like for startups (also included in the charts below) so here we’ll be looking at historical data from real companies. Which metric should be your north star to see if you are on track?

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Lighter Capital

AUGUST 17, 2023

For SaaS startups, customer acquisition may seem like the Holy Grail. And fast-growing startups often see increasing their customer base as the key vehicle for boosting revenue as quickly as they — and their investors — want. SaaS startups in particular need to think beyond the moment a buyer clicks “purchase.”

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Startup Valuation Blog

JANUARY 31, 2022

If you consider exchanging startup equity for services - you should follow three basic steps. . At the beginning of their life, startups often lack substantial financial resources. Therefore, the first thing you need to do is figure out the startup's value. We have compiled several tips to help make the replacement right.

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Equidam

APRIL 3, 2024

At the heart of every conversation between AI startup founders and potential investors, lies a question that neither side feels particularly confident answering: “What is the market size?” Early stage startups can pivot at any time, but one of the hardest things to change is the target market.

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Reynolds Holding

AUGUST 23, 2023

The world of startups often appears to embody the exceptionalism of modern finance, with funds swiftly flowing to the best teams and ideas wherever they may emerge. Financing startups remains a daunting challenge for most economies, and filling the market with public funds has proven insufficient, if not counterproductive.

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Machen McChesney

FEBRUARY 9, 2023

Unfortunately, it’s also an area where startups tend to make mistakes. Accounting is a critical element when launching a successful business venture. Here are some common (and avoidable) errors that entrepreneurs should watch out for.

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Equidam

AUGUST 11, 2022

TLDR: For startups, 3 years is the most common. 5 years if you are in a later stage (Series B+) or if your business is more predictable, or if your startup potential can only be expressed in a longer time horizon. You are trading off showing more of your startup potential vs having credible forecasts. First principles.

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Lighter Capital

DECEMBER 1, 2023

Seeking funding for your startup? While there’s no set standard for startup financial reporting, there are some basic elements that you should include, even if just on a single slide in a pitch deck. RELATED: Gross Margin vs. Net Margin: Two Startup Profitability Calculations 3. But what does that mean, exactly?

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RNC

JANUARY 16, 2024

Introduction: Within the ever-changing startup landscape, stock options may play a significant role in an employee’s benefits package. Even if they have the potential to yield large financial gains, startup equity presents a complex terrain that calls for careful thought and deliberate planning.

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Startup Valuation Blog

OCTOBER 12, 2021

According to Startup.info - Equitest is the Leading Business Valuation Software for Startups. The site Startup.info published an interview with the Founder-CEO of equitest, titled: "Equitest, the Leading Business Valuation Software for Startups". They do this by setting up startups and companies, building products.

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Equidam

SEPTEMBER 11, 2023

A question that comes up fairly often in our workshops: “What is a good valuation for my startup?”. The valuation is essentially your pitch, the future vision of your startup, translated into numbers. It may seem simplistic, but the question recognises that the process of valuation has some inherent flexibility.

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Equidam

JUNE 10, 2022

In 2013 equity crowdfunding was making headlines as the new frontier for startup investment. Startups you look at should be similar in terms of risk and return, which means: The raise should be recent, to ensure that market conditions are similar. Equidam was founded around that time, and saw significant traction in this new market.

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Equidam

AUGUST 10, 2023

Guest post from an Equidam partner: Bianca Iulia Simion , Marketing Lead at SeedBlink As the world of startups continues to evolve and mature, navigating the intricacies of equity management has emerged as a critical aspect of successful entrepreneurship. This fosters trust and gives ESOP beneficiaries a tangible stake in the business.

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Vested

JUNE 22, 2023

However, as a startup owner, you need to get out there and tell everyone about your business! You may be attending a large conference or maybe you have your own startup event, but it’s very likely that even if you’re at a mixed event, you’ll have a booth for your business and people will pass by.

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RNC

JANUARY 12, 2023

ESOPs are often a valuable tool for startup businesses, as they can help to attract and retain talented employees and align the interests of employees with those of the company. Read on if you’re interested in learning why and how ESOP valuation works so well for startups. How Do Startups Benefit from ESOP?

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Equidam

JULY 6, 2023

The last 18 months has been a rollercoaster for the startup equity market. The benchmarks provided in our Valuation Delta module are game changing for startup founders who have never had access to this kind of data before,” explained Daniel Faloppa, Equidam Founder & CEO. And there’s much more to come.

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Equidam

JUNE 21, 2023

While Equidam is primarily used for startup valuation around the pre-seed to series A stages, our framework is entirely applicable through the full life-cycle of a company. The qualitative methods used by Equidam, Scorecard and Checklist, are geared towards understanding the future potential of a startup, early on in its journey.

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RNC

AUGUST 22, 2023

These models, whether traditional ones like discounted cash flow analysis or newer approaches such as startup valuation offer ways to assess a company’s worth. One drawback is that conventional models, like the discounted cash flow analysis, might not effectively account for the features of startup firms.

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Lighter Capital

JANUARY 10, 2023

Before you sign any loan contract, get familiar with the types of debt covenants you might encounter and what you should look out for in startup financing agreements. Startup leaders should think really hard about what it would take to breach one of the covenants in a contract they’re about to sign. What is a debt covenant?

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Lighter Capital

MARCH 4, 2023

Startup founders have a million things on their minds: building a product, hiring a team, raising capital , getting that early traction, figuring out how to scale, or frantically throwing water on whatever metaphorical fires are inevitably burning. If you want to scale your startup you need, at the very least, a positive CLV to CAC ratio.

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Vested

JANUARY 13, 2023

We’ve just made it through one of the toughest years for the economy on record, but what does 2023 have in store for us and how will it affect recruitment for startups and SMEs?

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Lighter Capital

APRIL 3, 2023

Big companies know that it can lean on its payables, while the small SaaS startup on the other side needs to keep its large client happy. Many early-stage startups feel the pressure to create a nice office environment with lots of fun extras for recruiting purposes. Manage your customers' prepay Prepayments are great.

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Lighter Capital

AUGUST 12, 2023

This important SaaS metric can help startups establish product-market fit. If your SaaS startup is seeing high customer churn, it’s important to try to understand why customers are leaving so you take appropriate action to stop the bleeding as quickly as possible. 12 ÷ 50 = 0.24

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Equidam

JULY 18, 2022

It can be a little harder for those people to compute the relatively extreme growth potential of a startup with a global market and digital acquisition channels. When we raised our first round of capital for Equidam, about a decade ago, we didn’t know much of what we now know about fundraising. Plenty has changed since then.

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Law 360 M&A

NOVEMBER 22, 2023

Medical technology company Smith & Nephew PLC, advised by Davis Polk & Wardwell LLP, said Wednesday it has agreed to acquire sports medicine technology startup CartiHeal for up to $330 million to boost its sports medicine business and knee repair products.

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Lighter Capital

FEBRUARY 22, 2023

If your startup is in its early stages, now may not be the right time to worry about 409A valuations or top-down financial projections. Here’s how to set up your startup's accounting function, pre-funding days: 1. Here are 5 basic tax tips for young startups: Factor in the tax effects at the outset when you select a legal entity.

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Meade & Moore

JANUARY 26, 2022

These businesses, referred to as Recovery Startup Businesses, are eligible for a special carve-out of the ERC, which could result in a maximum credit of $100,000. There is, however, another way for certain businesses to qualify for ERC.

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Lighter Capital

NOVEMBER 17, 2022

Determining your startup’s valuation is one of the more difficult tasks you’ll face as a founder. Getting it wrong can cost you equity and diminish future capital investments — and in some cases it could lead your startup to fail. Why valuing startups is so challenging. How to determine and defend your SaaS valuation.

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Harvard Corporate Governance

FEBRUARY 20, 2024

Venture capital (VC) investors play an important role in advising, monitoring, and providing expertise to entrepreneurial startups. A key, yet often overlooked, feature of VC investments is that VC portfolios tend to include many startups in the same industry. more…)

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BV Specialists

JANUARY 31, 2022

The requirements change, however, when you have a startup operation that has yet to earn a single dollar and is still in its infancy. One of the tools you will need to independently support the value of your startup is a certified business appraisal.

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Vested

AUGUST 25, 2022

Are you looking for a cash injection for your startup? The Seed Enterprise Investment Scheme (SEIS) could be for you.

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Startup Valuation Blog

NOVEMBER 16, 2021

According to Equitest's Review on techozens.com - Equitest is: "The Best & Trusted Business Appraisal Software for Startups, CPA". As the name suggests Equitest is an intuitive valuation software that makes the equity valuation process simple and affordable for businesses, startups, and professionals. Technical support ?

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Vested

NOVEMBER 4, 2022

The same is often true for startups; when you found a brand-new company, you’re thinking about all the excitement yet to come, not your future exit. And that’s why every entrepreneur needs to be aware of exit plans and the necessity of having one for their startup. So, let’s take a look at the key things you need to know.

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Lighter Capital

JANUARY 11, 2022

At Lighter Capital, our Investment Team encounters a lot of questions from startup founders about the features of our financing solutions, such as early payoff provisions, minimum return requirements, warrants, debt covenants , and even whether we require a personal guarantee. Do all startup loans come with warrants? Let's dive in.

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Harvard Corporate Governance

OCTOBER 17, 2023

In 2003, a group of approximately two dozen lawyers specializing in venture capital (VC) finance embarked on a mission to standardize the financing documents utilized by VC firms for investments in US-based startups. This post is based on his recent paper. For this reason, central to the NVCA financing documents is the NVCA model charter.

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Harvard Corporate Governance

SEPTEMBER 29, 2023

Venture-backed startups famously aim for “exit.” Success for startups is often framed as reaching a liquidity event, or exit, that provides financial returns and rewards to the investors, founders, and employees. Most venture-backed startups, however, never reach either of these paths, or if they do it is in a state of distress.

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