Category: Equity Dilution

How Do Investors Decide – How Much Equity They Need, How Many Shares To Issue, How To Price The Share?

On By bsaikrishnaIn Company Value Estimation, Entrepreneurship, Equity, Equity Dilution, Number of shares to issue, Share Price, start-up

Ignore the first two slides if you're unaware of the methods.

Startup Valuations – How is a value of a startup calculated?

On By bsaikrishnaIn Entrepreneurship, Equity Dilution, startup valuation

Common Stock vs. Preferred Stock

On By bsaikrishnaIn Entrepreneurship, Equity Dilution1 Comment

Stock represents the equity ownership of a company. In the startup world, there are two types of stock broadly: common stock and preferred stock. Common stock is usually something is given in exchange for your effort (sweat stock) whereas preferred stock is something that is given in exchange of the money that you invest in …

Continue reading Common Stock vs. Preferred Stock

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How start-up equity dilution works for Founders and Early Investors ?

On By bsaikrishnaIn Entrepreneurship, Equity Dilution, start-up8 Comments

Startups typically have three broad ways of funding their companies. They are incubators/accelerators, angel investors, and venture capitalists (institutional investor). Generally, Incubators and Accelerators help the start-up team to set-up the company, and shape the start-up's Go-To-Market strategy. This article is limited only to explain how the equity dilution works and won't get into the …

Continue reading How start-up equity dilution works for Founders and Early Investors ?