What is an Angel Investor? Definition and Overview
Angel investors invest in both mature companies and start-ups alike. A recent study shows that the average business that seeks out angel investors is 6 years old. Companies seek out angels because it allows them to connect with public investors while remaining a privately-held company.
Blank Check Company (SPAC): Definition & Purpose
Blank check companies, or special purpose acquisition companies (SPACs), have been on the rise over the past 15 months as an alternative to taking a company public. So what are they and what’s all the fuss about?
Qualified Small Business Stock (QSBS) Section 1202 Exclusion
Qualified small business stock is an internal revenue code exclusion that provides between 50-100% tax exemption for long-term investors and other shareholders.
What is Liquidation Preference and Who Benefits Most?
Whether you’re an entrepreneur, investor, or even an employee with some stock options in a startup, the importance of understanding liquidation preference cannot be overstated.
A Guide to Rollovers as Business Startups (ROBS)
If you’re looking for startup or operating capital for a business, you might exhaust all debt and equity financing options before discovering that Rollovers as Business Startups (ROBS) could have been a great option from the start.
Common Stock vs. Preferred Stock: Understand The Differences
All corporations, whether public or private, have shares of stock. Each share carries a price, whether established by the market (investors) or approximated by the company itself (pre-money valuation), that when combined, represent 100% of the company’s equity.
Term Sheet Guide: Important Terms, Clauses, and Closing Deals
The term sheet is a vital document that entrepreneurs face on rare occasions but venture capitalists see regularly. Learn the terms and clauses to be prepared.
11 Business Pitch Tips from Fundraising Experts
A business pitch will need to be a unique recipe but you should leverage these fundamental ingredients used by the masters within your fundraising pitch & deck.
Pre-Money vs. Post-Money Valuations: How to Calculate Each
There is a surprisingly large number of business finance terms that are prepended with the “pre-” flag: “pre-seed”, “pre-IPO”, “pre-revenue” and, you guessed it, “pre-money valuation.”