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Startup Spotlight: Daniel Faloppa

Startup Spotlight: Daniel Faloppa

In our latest chat, we're thrilled to feature Daniel Faloppa, Founder & CEO of Equidam, the platform revolutionizing how startups approach valuation. Daniel has led Equidam to become a beacon for entrepreneurs worldwide, offering a sleek, data-driven solution to navigate the complex waters of business valuation and investment. Equidam's mission is

Share Dilution: Impact on Present and Future Stakeholders

Share Dilution: Impact on Present and Future Stakeholders

In the world of startup growth and investment, the issuance of shares plays a pivotal role. Whether as a strategy to incentivise employees or to attract future investors, the allocation of shares can have considerable influence over both current and potential shareholders. In this week’s article we’ll explore

Navigating Growth Shares

Navigating Growth Shares

Growth shares have become popular as a strategic instrument within the UK startup landscape. Their unique attributes offer a fresh opportunity for both companies and stakeholders to flourish. Here are some of the key points to bear in mind when exploring growth shares, and how to navigate through them confidently

The Impact of Equity Management on Company Culture

The Impact of Equity Management on Company Culture

In the fast-paced and ever-evolving startup landscape, company culture plays a crucial role in shaping the success and growth of a business. It sets the tone for collaboration, innovation, and employee engagement. One often overlooked aspect of company culture is equity management, especially with how Employee Stock Ownership Plans (ESOPs)

Startup Spotlight: Karoliina Kauhanen The Power of Social Sustainability

Startup Spotlight: Karoliina Kauhanen The Power of Social Sustainability

Did you know that loneliness is as deadly as smoking? One of the things we’ve learnt from lockdown culture during the pandemic is the importance of social connections and the power of the community. This week we talk about Social Sustainability with our new friend Karoliina Kauhanen and Co-Founder

Equity Management for Startups - Why it Matters

Equity Management

Equity Management for Startups - Why it Matters

Equity management is a crucial aspect of running a startup that often goes overlooked in the midst of rapid growth and daily operations. However, effective equity management is vital for startups to attract and retain top talent, align interests, and set the foundation for long-term success. In this article, we

Startup Spotlight: Ekta Mahajan The Founder 2.0

Startup Spotlight: Ekta Mahajan The Founder 2.0

This week we talked to our friend Ekta Mahajan, Founder of Emplio about how the next stage of Innovation will not be in the products or services of a startup but the evolution of founders themselves. Weighed with the burden of running a business, a founder today must solve a

WE.WIKI: The Founders Quick Guide to Equity Management

WE.WIKI: The Founders Quick Guide to Equity Management

WE.WIKI: the hero founders deserve (and the one they need right now too, turns out). Listen, we get it. Founders have to be many things. The superhero of support for the team. A tech whiz when it comes to product, the moonlighting accountant for finance and the charismatic storyteller

Startup Spotlight: Jonny Loudon

Startup Spotlight: Jonny Loudon

An interview with ex-Royal Marine, Jonny Loudon, about how startup life compares to life in the military.

What is Share Dilution?

Share dilution is the decrease in ownership when additional shares/equity are issued as a result of a corporate transaction. Share dilution can also be called equity dilution and or stock dilution. Shares in private companies can have provisions of non-dilutive shares, where the equity owner will always keep the

Convertible Note vs. SAFE Note

There are multiple differences between Convertible Notes and SAFE Notes: 1. Debt Classification: Convertible Notes are debt, and SAFE Notes are not. Convertible Notes are loans that need to be repaid, either through cash or shares in the company. The goal is to be repaid in shares, in case the

A Guide to Shareholder Rights

Liquidation Preference Shareholder receives priority in being paid out in the case of a liquidity event Voting Rights Shareholder has the right to vote on company bylaws, board members, etc. Tag Along Rights Minority shareholders can sell their shares, or ‘tag along’, in the event a majority shareholders sells. Drag

Employee Equity Plans

A Guide to ESOP Terms

Vesting Period Vesting in the context of Employee Stock Ownership Plans (ESOPs) refers to the process by which an employee earns the right to receive ownership of shares in their employer's company. When an employer offers an ESOP, they typically grant employees the option to purchase company stock at a

Employee Equity Plans

What's a Vesting Schedule?

A vesting schedule is a plan that outlines the conditions under which an employee becomes entitled to receive certain benefits, such as stock options or company-matched contributions to a retirement plan. In the context of equity-based compensation, vesting schedules typically specify the length of time an employee must work for

Common vs. Preferred Stock

People invest in a company and they receive stock representing their equity ownership in the company. But not all stock is created equal! Companies can issue different share classes to attract different investors. Here are a few differences between preferred and common stock: Characteristics of Common Stock * Upside Potential for

What are Drag Along Rights?

A drag along right allows the majority shareholder of a company to force all other shareholders to accept a buy-out offer, often from a third party like a fund or larger corporation. All of the shareholders receive the same terms of the sale in order to “drag” them along in

What are Tag Along Rights?

Tag along rights are legal shareholder agreements that guarantee minority stakeholders the right to sell their shares in the company at the same time and under the same conditions as the majority stakeholder. Tag along rights could be part of a venture capital deal where there are few majority shareholders

If I Don’t Have Investors, How Do I Valuate my Company?

The common belief is that startups are viewed as successful based on their company valuation. But why do you need to value a private company? The short answer is that you do not need to value your company until required by a corporate transaction, including taking on investment, starting an

How do SAFE Notes Work?

A SAFE Note is a form of convertible security. Very similar to a convertible note, the investor pays cash today with the expectation that the cash turns into valuable stock later. The term SAFE is an acronym for Simple Agreement for Future Equity, which was created by Y Combinator 2013

How do Convertible Notes Work?

A convertible note is short-term debt that converts into equity. The basic mechanics of a convertible note include an investor loaning money to a startup, and instead of a return in the form of principal plus interest, the investor would receive equity in the company. Convertible notes are often used

Should I try Crowdfunding?

Crowdfunding is the process of raising small amounts of money from a large number of people, typically through online platforms. Advantages of Crowdfunding As a startup founder, crowdfunding can be a valuable alternative to traditional forms of funding, such as venture capital or angel investing. Here are some advantages of

Should I Fundraise with Private Equity?

Private equity investors pool their money together to buy and take control of an existing company that is typically more mature than a startup. The goal of private equity is to improve the company's performance, increase its value, and then sell it for a profit. Advantages of Fundraising via Private

Should I Fundraise with Angel Investors?

Angel investors are typically wealthy individuals who use their personal funds to invest in startups, usually in earlier stages of the company's growth. Not only are angel investors great resources for early-stage capital, they often provide mentorship and guidance to the founders. Advantages of Raising via Angel Investors As a

Should I Fundraise with Venture Capitalists?

Venture Capitalists are firms or investors who invest in early-stage startups with the potential for significant growth and returns. Venture capitalists typically invest in companies that have already shown some traction in their market and have the potential for exponential growth. Advantages of Fundraising through Venture Capital As a founder,

What is the FFF Round?

Short for "Friends, Family, and Fools", the FFF round is when a startup fundraises through their closest network (i.e. friends and family). Advantages of the FFF Round Engaging a close network and early investors is often the most-available option for early-stage founders, making the FFF round a common method