Phantom Equity for Startups
Motivating and inspiring employees involves various strategies. One emerging approach gaining popularity is the use of phantom shares, also known as virtual stock options. These phantom shares offer similar financial benefits to traditional stock options but don’t grant actual ownership...
How to Make a Cap Table: Examples and Templates
A capitalization table, also known as a cap table, is a document that outlines the actual ownership percentage of a company, showing the breakdown of ownership stakes among shareholders, including common shareholders, preferred shareholders, and options and warrants holders. Additionally,...
A Guide to Form D Filings
Understanding the Basics of Form D Form D filings are a requirement for certain companies that are raising capital through the sale of securities. These filings are made with the Securities and Exchange Commission (SEC) and serve as a notice...
Setting Up, Managing, and Achieving Success with a VC Fund
Starting a venture capital fund with Special Purpose Vehicles (SPVs) offers several advantages for investors and fund managers alike. Starting a VC Fund with Special Purpose Vehicles Special Purpose Vehicles (SPVs) are legal entities created for a specific purpose, such...
Understanding Common Carry Percentage
Special Purpose Vehicle (SPV) carried interest refers to the share of profits that an SPV manager receives as a reward for their role in managing and investing the funds of the SPV. The purpose of this blog post is to...
Angel Investing: Understanding the Process
Understanding the Basics of Angel Investing: What it is and Why it Matters Definition of angel investing Angel investing refers to the practice of providing capital and mentorship to early-stage, high-growth companies in exchange for an ownership stake. Importance of...
How To Write The Perfect One Pager Investment One-Pager
Encouraging people to invest in your startup often involves creating various documents and delivering presentations. You’ll need an impressive pitch deck along with a compelling verbal pitch. Key information about your company, such as your current user base, projected growth,...
Making Your Deal Stand Out to Investors
Capture investors’ attention with your business’s most impressive achievements and key statistics. Each point should leave them impressed. Impressive Growth: Showcase your growth rate prominently. For instance, state, “Achieved 3x revenue growth from 2018 to 2019, and we’re on...
506(b) SPV Capital Raising and Common Types of Convertible Debt
Convertible debt is a type of financing that can be converted into equity at a later date, usually at a pre-determined conversion rate. It allows companies to raise capital while giving investors the option to convert their debt into equity...