Regarding corporate finance transactions, special purpose vehicles (SPVs) are becoming increasingly popular to manage risk and minimize liability for a parent company. An SPV is a separate legal entity that can be used in various ways to facilitate different financing or other business activities. In this article, we will explore what an SPV is, provide…
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The world of web3 projects is ever-evolving, and how these projects are funded must evolve with it. In recent years, a new fundraising mechanism has emerged to support web3 development – the Simple Agreement for Future Tokens, otherwise known as SAFT. This article will explore the concept of SAFT and how it can be used…
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A Simple Agreement for Future Equity (SAFE) is a contract between a startup and an investor that allows the investor to receive equity in the company at some point in the future. When it comes to understanding the differences between pre-money and post-money SAFEs, it’s essential to consider the pros and cons of each type…
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When it comes to investing, there are a variety of options available for those looking to make their money work for them. One of the more popular methods is utilizing stock options or stock warrants, but what’s the difference between the two? In this article, we’ll explore the ins and outs of each option and…
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Options vesting is an essential tool for companies to retain and incentivize employees. For businesses that want to reward their employees in a way that is tailored to their successes, milestone-based options vesting schedules provide an effective and flexible solution. This article will explore the various benefits of this type of schedule, how it can…
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Profit Interest Units (PIUs) have become an increasingly popular way for LLCs to manage their finances and track their investments. However, when working with these PIUs, knowing which approach is best can be challenging. For some companies, using a DIY tool may be the right choice. But for others, a cap table solution built specifically…
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Incentive stock options (ISOs) are a great way to give your employees a stake in your company’s success. However, the IRS sets an essential limit for ISOs: the $100K limit. This article will explain the tax benefits of ISOs, how to maximize their benefits, and common pitfalls to avoid. We will also discuss why it’s…
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For businesses of all sizes, having an integrated Human Resources Information System (HRIS) and cap table system is essential for ensuring accurate record-keeping and streamlined workflows. By bringing these two systems together, businesses can enjoy improved data security, cost savings, payroll and equity information transparency, fewer errors, and greater compliance with relevant regulations and laws.…
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The value of a business can be determined in many ways, each with its own set of standards and expectations. However, understanding and adhering to the right business valuation standards is essential for making well-informed decisions about a company’s worth. In this article, we’ll explore the importance of business valuation standards, discuss the International Valuation…
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Every entrepreneur knows that having the right resources and capital is essential for turning a business idea into a successful reality. Startup fundraising is the process of securing funds to launch and grow a venture, and it can be both daunting and rewarding. This article will discuss the different types of funding sources available to…
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