Switching Costs Explained for Founders
Switching costs are the time, money and effort a customer would need to move from your product to a competitor. They quietly shape how long customers stay, how …
Format
Explainer
Impact Investing Explained for Founders
If your business exists to solve a social or environmental problem, you may have heard that impact investors are the natural people to fund it. That can be …
Most Favored Nation Clauses Explained
An early investor asks for "an MFN" and it sounds harmless: they simply want to be treated as well as anyone who comes later. Most of the time it is harmless. …
Contingent Liabilities Explained for Small Businesses
Not every obligation shows up as a bill. A customer threatening to sue, a loan you guaranteed for someone else or a warranty promise on products you sold can …
Secondary Funds and Continuation Vehicles Explained
Startups can take many years to reach a sale or a public listing, but venture funds have fixed lifespans and their own investors waiting to be paid back. …
Valuation Caps Explained With Examples
A valuation cap is one number on a short document, yet it can decide how much of your company early investors end up owning. This guide explains what a …
Founder Vesting Acceleration: Single vs Double Trigger
Vesting decides when your founder shares are truly yours. Acceleration decides what happens to the unvested shares if the company is sold before your schedule …