Prepaid Expenses Explained
You pay a year of insurance in January, and suddenly January looks like a terrible month while the other eleven look suspiciously good. Prepaid expenses fix …
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Explainer
Board Observer Rights Explained
An investor asks for a board observer seat, and it sounds harmless: they just want to listen in. In practice, an observer sees almost everything your board …
Deferred Revenue Explained for Subscription Businesses
When a customer pays you upfront for a year of boxes, software or memberships, it feels like a great month. On paper, though, most of that money is not revenue …
SAFE Side Letters Explained: Pro Rata and MFN
The SAFE itself is often a short, standard document. The surprises tend to live next to it, in a side letter that gives one investor extra rights. Pro rata …
Business Loan Covenants Explained
When a lender approves a business loan, the interest rate and repayment schedule get most of the attention. Tucked into the agreement, though, is a list of …
Venture Studios Explained for Founders
A venture studio builds new companies from the inside: it comes up with ideas, tests them with its own team and money, then recruits founders to run the ones …
Pre-Money vs Post-Money Valuation Explained
"We're raising $1 million at a $4 million valuation." That sentence sounds clear until someone asks, "Pre or post?" The answer changes how much of your company …