Raising capital is an essential part of the startup world. While traditional equity investments are often used, two other popular instruments that have become increasingly common are safe and convertible notes. These two forms of investment offer companies and investors different advantages and disadvantages, so it is vital to understand their differences before deciding. In…
Cap table management is an integral part of running a successful business. It records and tracks all the equity ownership information for your company, such as who owns shares, how many shares are owned, and how those shares are allocated. It can be difficult to accurately track ownership changes or properly manage stock options and…
Equity management and investing are complicated topics, and many of our clients run into terminology that’s new to them and their operations. This is our ever-growing glossary of terms related to cap table and equity management, touching on key Astrella offerings and services. Consult with an Expert Today Cap Table: A cap table, short for…
Welcome to our comprehensive FAQ page on equity management, cap table management, and company funding. Whether you’re a startup founder, an employee seeking to understand stock options, or an investor navigating funding rounds, this resource is designed to provide clear and concise answers to the most common questions in this dynamic and vital industry. From…
Stock dilution is an essential part of equity investing that can benefit businesses. It is increasing the number of shares in a company, either through issuing new shares or by converting assets into stock. While this practice can be useful for raising capital, giving employees equity-based compensation, and increasing voting control, it also has potential…
As an entrepreneur, you want to ensure your startup reaches its full potential for success. Investing in a new venture is a significant undertaking, and finding the right investor who can help take your business to the next level is essential. In this article, we’ll discuss the different stages of investment and how to research…
Navigating the intricacies of startup funding involves understanding a range of financial tools, and one that stands out for its adaptability and significance is the convertible note. In its technical sense, a convertible note is a debt instrument that startups use to raise capital. It’s essentially a loan that can be converted into equity (ownership…
Distribution waterfalls play an important role in determining how investment returns are distributed among stakeholders. As private investments become increasingly popular, especially in alternative asset classes like private equity, venture capital, and real estate, understanding distribution waterfalls is essential for investors and fund managers alike. In this article, we’ll delve into the concept of distribution…
I’d define what is it here and it is not required for a private company. BUT, if you have equity and are growing, it’s a good idea and a good practice to start. Are you looking for guidance on accounting for stock compensation transactions? ASC 718, also known as the Accounting Standards Codification (ASC) Subtopic…
Stock options are a powerful tool for startups to access capital, attract, retain talent, and manage equity. With the right strategy, stock options can drive significant growth and success for startup businesses. In this article, we will explore the basics of stock options in startups, their different types and legal implications, the benefits they offer,…