Quick Ratio vs Cash Ratio
Can your business pay its bills if sales slow down for a while? The quick ratio and the cash ratio both answer that question, but with different levels of …
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Explainer
Investor Pro Rata Waivers Explained
Your existing investors may have the right to keep their ownership steady by buying into your next round. That is a good thing until a new lead investor wants a …
Royalty Financing Explained
What if you could raise money without selling shares and without a fixed monthly loan payment? Royalty financing does exactly that. Investors give you cash …
Investor Rights Agreements Explained
Your first priced round arrives with a stack of documents, and the investor rights agreement is the one you will live with longest. It decides what your …
Early Payment Discounts: Do They Pay Off?
"2/10 net 30" looks like a tiny line on an invoice. Behind it sits a surprisingly big financial decision, for the business offering the discount and for the one …
SAFE Conversion Explained: What Happens at the Priced Round
You raised money on SAFEs months or years ago, and now a priced round is on the table. Suddenly everyone is asking how the SAFEs convert, what price they get …
Revenue per Employee Explained
Revenue per employee is one of the simplest numbers in business: take your annual revenue and divide it by the people it takes to earn it. It is also one of the …