How do you determine the equity division among founders? When a set of people get together to form a company this is the first question. Is there a framework or a fixed formula for the same. Instead, it is a function of some factors. There are also some other concerns to keep in mind as
Equity is the most critical part that a founder holds onto. Equity to startup advisors, the eternal question, who gets what? Who are the people that will be part of this journey and for a long haul? The startup advisors pour in their knowledge and help where you are either stuck or need someone
It is the responsibility of the founders to keep an eye on the nuances of Business Valuation. Pre-money and Post-money valuation refer to company’s worth at two different timings. In simple terms, Pre-money valuation is company’s worth before it raises investment from VCs. Likewise, Post-money valuation is it’s worth after adding the financing received
Often young entrepreneurs go through conflict whether it is wise to start a business without registering a company. There are too many legal technicalities and compliance costs to wrap around our heads. Apart from that, we are unsure of how far start-up would scale. Is business without registering a company more comfortable? Will it
The Capitalisation (CAP) table refers to an organized list of all stakeholders and their respective stakes in the company. This sheet clearly lists all founders, investors, directors, and employees who own shares and voting rights. Likewise, it gives a transparent picture of who owns how much by including share prices. Cap table also breaks
What kind of company to setup would be a basic question for any start-up founder? With various options available, founders would have to brainstorm to figure out this dilemma. You could go for a sole proprietorship if you intend to keep ownership and control in your hands. Or you could choose an LLP for
Is it necessary to trademark before I register a company? A trademark distinguishes your business from competitors. They act as the face of your company and make an effective communication tool with customers. It’s crucial to realize the Importance of trademark in this digital era. As it protects your brand legally and preserves its