Equidam

MAY 12, 2024

In a difficult environment for founders and investors, AI startups have been the obvious outlier with their ability to raise capital on generous terms. Analysis of valuations on Equidam shows early-stage AI startups had an average valuation of $25.1M The history of public interest tells an interesting story, as well. from 2021 onwards.

Technology 61

Technology Marketability B2B EBITDA 61

Lighter Capital

FEBRUARY 12, 2024

A startup founder begins the entrepreneurial journey owning 100% of the company, or a split of that if there are co-founders in the mix. As if building and growing a new, successful business isn’t challenging enough, founders often struggle with preserving their hard-earned equity throughout the startup life cycle.

Equity 52

Equity Start-ups Finance Marketability 52

Equidam

MAY 12, 2024

In a difficult environment for founders and investors, AI startups have been the obvious outlier with their ability to raise capital on generous terms. Analysis of valuations on Equidam shows early-stage AI startups had an average valuation of $25.1M How, and to what extent, can we assign future value to the promise of AI?

Technology 52

Technology B2B Marketability EBITDA 52

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.

Equity 52

Equity Banking Intangible Assets Marketability 52

Lighter Capital

AUGUST 10, 2023

Cash is the fuel that keeps a business running; if your startup runs out of cash, it will sputter awhile and then conk out. You can have a great product, a solid customer base, and all the right metrics — yet still run out of money if you don’t manage it well. There’s no getting around it: Startups have to spend money to make money.

Start-ups 93

Start-ups Finance EBITDA Debt Financing 93

Lighter Capital

DECEMBER 22, 2023

Short-term financing (12 months or less), which includes merchant cash advances (MCA) and merchant financing, often attracts startup founders looking for lower capital costs and quick access to cash — but those benefits can fade quickly if the loan terms don’t line up with what the business needs.

Finance 59

Finance Start-ups Debt Financing B2B 59

Lighter Capital

AUGUST 25, 2023

We’ve all read the headlines: SaaS Startup Raises $100M in Venture Capital to Disrupt Market with Its Innovative Solution It seems so common, but is it really? Venture capital funding is to tech startups what the Wizard of Oz was to Dorothy. Not all startups need venture capital, though.

Venture Capital Fund 92

Venture Capital Fund Equity Marketability Finance 92

Brian DeChesare

SEPTEMBER 20, 2023

No Right or Wrong Answers – Some technical questions have correct answers, but many market and investment ones do not. There are better and worse explanations for your answers, but in the absence of time travel, VC interviewers can’t determine if your startup investment pitch was “correct.” Which market is attractive?

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Lighter Capital

AUGUST 17, 2023

You’ve launched your startup, you have a solid leadership team, you have some incoming revenue, and the future looks promising. When startup funding dries up , what do you do? Here’s Lighter Capital’s step-by-step guide to help your tech startup survive — and even thrive — when a shaky economy causes funding sources to evaporate.

Banking 98

Banking Marketability Finance Equity 98

Lighter Capital

NOVEMBER 17, 2022

Getting it wrong can cost you equity and diminish future capital investments — and in some cases it could lead your startup to fail. We did the heavy lifting and put everything you need to know about how to value your startup into this Valuation Quick Guide. Why valuing startups is so challenging.

Equity 52

Equity Start-ups Marketability Finance 52

Equidam

SEPTEMBER 15, 2022

You screen a tremendous number of startups, pick a handful, and hope a few of those will grow up to become unicorns. You are asked to estimate how well a startup will do, in order to ascertain a fair and attractive price – while knowing that being left out of one or two potential trillion-dollar deals could cost you your job later on.

Start-ups 89

Start-ups Marketability Equity Technology 89

Equidam

JULY 14, 2022

In an analysis of the market, Justin Kahl and David George of Andreessen Horowitz showcase data on how public companies have seen their revenue multiples shrink by an average of 60%, with large sector variability. For all startups? What connects stock market contraction to startup valuations? But are valuations really down?

Marketability 79

Marketability Start-ups Venture Capital Fund Alpha 79

Startup Valuation Blog

AUGUST 2, 2022

An angel investor is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Have you wondered What angel investors want from a startup? They will be happy to invest in a company that has 4 characteristics: 1.Return Return on investment.

Beta 100

Beta Equity Marketability Banking 100

Lighter Capital

SEPTEMBER 26, 2023

For tech startups that need capital to grow fast when opportunity arises, there are two main funding paths to choose from: debt and equity. Though equity funding does have advantages for certain startups, it also has disadvantages. Though equity funding does have advantages for certain startups, it also has disadvantages.

Debt Financing 52

Debt Financing Finance Start-ups Equity 52

Startup Valuation Blog

MARCH 15, 2022

Do you want to increase the value of a startup? . . How To Increase The Value Of A Startup? The startup time of the business is the high time that analyzes the future success rate of the business. Any decision that is made in the startup period of the business has an effect on its future growth. Introduction.

Start-ups 100

Start-ups Marketability Business Enterprise Firm Value 100

Startup Valuation Blog

DECEMBER 15, 2021

The value of a startup is affected by many factors. Here is a list of nine factors that affect the value of a startup. . As we have already mentioned the importance of valuing your startup, an increased startup value directly means that you are excelling in your startup, and your continuous struggle will indeed bear fruit.

Start-ups 100

Start-ups Business Valuation Firm Value Marketability 100

Lighter Capital

FEBRUARY 13, 2024

Equity dilution is part of growing a successful startup. Use the following 10 tactics to avoid excessive share dilution while growing your startup. How to Prevent Excessive Equity Dilution in Your Startup 1. If you’re interested in non-dilutive capital to grow your tech startup, check out revenue-based financing.

Equity 52

Equity Finance Debt Financing Capital Structure 52

Lighter Capital

JULY 20, 2023

While a well-capitalized venture with several million dollars in the bank can behave like a large, established company from the jump, a bootstrapped startup has to manage cash more carefully, growing at a rate they can afford and control. Why do startups use debt financing? It’s best to start with the basics.

Debt Financing 52

Debt Financing Finance Equity Equity Financing 52

Lighter Capital

SEPTEMBER 28, 2023

When “growth at any cost” was the name of the game in tech, founders could breeze by without calculating and comparing their startup’s EBITDA margin. An EBITDA margin is the ratio of EBITDA to revenue; it shows how operating expenses are eating into a company’s profits. How high should you aim? What is considered good ?

EBITDA 52

EBITDA Finance Start-ups Marketability 52

Equidam

JUNE 8, 2023

In January of last year, we wrote about how the supply of capital had saturated many other asset classes, and early stage equity was becoming more attractive to a greater number of investors. We shared a hope that this abundance of capital would lead to greater levels of investment in overlooked areas. Today, valuation matters again.

Start-ups 77

Start-ups Finance Equity Marketability 77

Equilest

SEPTEMBER 8, 2022

Wonder How To Read A capitalization table (A Cap Table)? Have you wondered how to read A capitalization table (a cap table)? The capitalization table lists all of the company’s securities, like ordinary shares, preferred shares, and warrants, as well as who owns them and how much different investors paid for the security. .

Business Valuation 40

Business Valuation Equity Debt Financing Start-ups 40

Equidam

FEBRUARY 16, 2024

Whenever we were not able to find a significant amount of real pre-money valuations in a given country, we broadened our perspective to the closest larger geographic entity (namely, continental region and continent). You can refer to the table at this link to see how they will change for your country specifically.

EBITDA 44

EBITDA Specific Risk Banking Marketability 44

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 leads to confusion and potential conflict during fundraising rounds.

Equity 52

Equity Capital Structure Dividends Marketability 52

Equidam

JULY 18, 2022

Neither side of the deal will be experienced with valuation or investment, so the formula really only makes sense if you are both shouldering risk in equal proportions. How quickly will they be looking at a pre-seed or seed round? How much of their ambition is going to be dependent on external capital?

Start-ups 77

Start-ups Equity Marketability 77

Brian DeChesare

MARCH 13, 2024

Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity.

Equity 90

Equity Start-ups Marketability Banking 90

Equidam

APRIL 14, 2023

As the founder of a startup, you know that raising money from investors is sometimes crucial for growth and success. However, with so many startups competing for those investment dollars, it can be challenging to stand out from the crowd.

Marketability 61

Marketability 61

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. How will investors react?

Start-ups 85

Start-ups Banking Marketability 85

Lighter Capital

AUGUST 31, 2023

Before we show you how to calculate EBITDA margin and how to interpret it, we’ll define EBITDA, discuss its importance, and clarify how EBITDA margin compares to other profitability measures. This percentage indicates how much of a company’s operating expenses are eating into profits. What is EBITDA?

EBITDA 52

EBITDA Start-ups Finance Equity 52

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?

Dividends 52

Dividends Business Valuation Marketability 52

Lighter Capital

JULY 22, 2023

One of the most appealing features of SaaS startups is their sticky revenue streams, which make them less risky investments. SaaS companies often start generating revenue much earlier compared to startups in other tech categories. When opportunity strikes, how do you extend your runway to reach that next level?

Finance 98

Finance Equity Equity Financing Banking 98

Lighter Capital

SEPTEMBER 1, 2023

Gross margin is important for several reasons: It puts your startup on the path to profitability, It’s a good indicator of scalability; and Investors use it to evaluate and value your startup. A low gross margin typically indicates low operational efficiency, which creates challenges for scaling your startup.

Finance 52

Finance 52

Viking Mergers

FEBRUARY 20, 2023

It is tax season, and as small business owners, we know what that means – how can we save some cash without raising red flags with the IRS? Investment Tax Credits Percentage: 6%-30% of qualified costs. There is still time to take advantage of these tax credits on your 2022 filing. Every year, the IRS collects over $4.9

Technology 130

Technology Treasury 130

Equidam

SEPTEMBER 20, 2022

Whenever we were not able to find a significant amount of real pre-money valuations in a given country, we broadened our perspective to the closest larger geographic entity (namely, continental region and continent). You can refer to the table at this link to see how they will change for your country specifically.

Specific Risk 52

Specific Risk Marketability Equity 52

Lighter Capital

FEBRUARY 5, 2021

If you already have a functional prototype and a business plan and you've burned through much of your initial money, then you’re ready to start raising real capital for your startup. There are several natural questions that come up at this point: Where can I find the money I need? And how much money should I raise?

Start-ups 52

Start-ups Equity Marketability Finance 52

Equidam

NOVEMBER 21, 2022

In this post, we’ll discuss everything that we have learned in the last 10 years performing startup valuation. Over the past 10 years, we’ve helped north of 140,000 startups to make sure valuation was not a dealbreaker when raising capital. How does the startup valuation journey start?

Start-ups 57

Start-ups Marketability Alpha Finance 57

Equidam

AUGUST 31, 2023

Whenever we were not able to find a significant amount of real pre-money valuations in a given country, we broadened our perspective to the closest larger geographic entity (namely, continental region and continent). You can refer to the table at this link to see how they will change for your country specifically.

57

57

Equidam

DECEMBER 13, 2022

Wall Street invariably responds in the red, and startup outlets proclaim the tighter availability of capital and the lower valuations. But what is the actual connection between interest rates, startup capital, and valuations? How is inflation influencing each of these factors? For many startups, the main cost is their team.

52

52