Investor Information Rights and Monthly Reporting
When you close a round, you usually promise investors certain information: financial statements, budgets and sometimes the right to look at your books. Those …
Format
Explainer
SAFE Stacking: The Risks of Raising Several SAFEs
Raising one SAFE is quick. Raising a second, then a third, then a "small top-up" from a friendly angel feels just as quick each time. The trouble is that every …
Accounting for Prepaid Class Passes and Bundles
January is when the class packs sell. Gyms, yoga and pilates studios, dance schools, climbing walls and tutors all see a rush of people buying 10-class passes …
Dividends on Preferred Stock Explained
Most founders skim past the dividend clause in a term sheet because nobody expects a young startup to pay dividends. That is usually true, but the wording still …
Founder Loans to the Company Explained
Plenty of companies are kept alive in their first year by the founder's own savings. Sometimes that money goes in as equity, but often it goes in as a loan, …
Break-Even Sales per Day for Shops Explained
A monthly break-even figure is useful for your accountant, but it is hard to feel at the counter on a slow Tuesday in January. Break-even sales per day turns …
Investor Consent Rights in Day-to-Day Decisions
After a priced round, some company decisions need a yes from your investors before you act. These investor consent rights, often called protective provisions, …