Employee Stock Purchase Plans (ESPPs) are a benefit companies offer their employees. ESPPs present a unique opportunity to buy company stock at a discounted rate, with the possibility of tax advantages. By participating in these plans, employees become investors in their employer’s success, making ESPPs a valuable inclusion in compensation packages. This article will break…
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As a startup, your team’s talent and knowledge are often irreplaceable. Anything you can do to hire and keep the right people can be key to helping your company thrive. Equity can be a great way for startups to retain valuable staff, advisors, and consultants. But if your business has limited funds, you may not…
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Spending money is an essential part of growing a business. But to make sure it doesn’t get out of hand; you must track your burn rate — and figure out how to maintain a balance that enables expansion and longevity. Your burn rate is an important financial metric measuring how quickly your company uses up…
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If you’re a startup navigating the world of fundraising, you might find yourself faced with a choice — priced rounds or unpriced rounds. Each fundraising approach has unique benefits that can help shape your company’s financial future and relationship with investors, so it’s important to understand the distinction between them. This article will explore the…
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Equity investments provide essential capital for growth and expansion, attract top talent through stock-based compensation, and position your business for potential future funding rounds or lucrative exit opportunities. They also come with great responsibility to manage and track that equity accurately. If you’re new to equity management, this article will provide you with the basics:…
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Regarding employee rewards and incentives, stock options and RSUs are two of the most popular choices for employers. But what are the key differences between them? This article will provide an in-depth comparison of stock options and RSUs, exploring their tax implications, vesting schedules, and when to exercise stock options. We’ll also summarize the main…
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Launching a startup is an exciting endeavor that requires a lot of money to ensure early success. Series A funding is a type of venture capital investment that can help startups overcome initial hurdles when it comes to capital. This article will review what Series A funding is, who the investors are, how to get…
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A 409A valuation is an important process private companies use to make sure that their equity compensation events are fair and compliant with IRS regulations. It involves determining a company’s common stock’s fair market value (FMV), which can be used in various aspects of a business’s financial planning. This article will provide an overview of…
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A capitalization table, or cap table, is necessary for any startup or business as it helps to organize and display the company’s equity ownership. It also helps track things like convertible securities, stock options, and stock compensation grants. Ensuring your cap table is well-maintained, organized, and clearly defined will accurately represent the company’s current market…
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As an investor, you want to know what you’re getting yourself into. The best place to start is with the prospective company’s cap table. A cap table is essentially a spreadsheet. The spreadsheet offers investors a quick glance into which shareholders own what, how much, and the best place for you to jump in. That…
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