Liquidation Preferences in Startups
Liquidation preferences help investors get their investment back when the startup is acquired or liquidated at a lower valuation.
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- Oct 17
- 2 min
Is the funding winter going to get worse?
Carta is a treasure trove of useful information. Since it manages the shareholders' list (known as the cap table) of thousands of...
- Sep 13
- 4 min
Angel Investing – Fees, Returns and the Power Law
The power law dictates that a lion's share of VC returns comes from a small number of deals while most investments fail to return capital.
- Aug 14
- 2 min
What is a liquidity event in angel investing?
When a startup becomes big, its early investors sell their shares to bigger VCs at a profit. This is called a liquidity event.
- Jul 15
- 2 min
The math behind Carry in Angel Syndicates
Carry, short for Carried Interest, is the share in profit that a fund manager (GP) gets when they investment does well.
- Dec 19, 2022
- 2 min
ESOP Valuation in Startups
ESOPs are a proven way of creating employee wealth. In any venture-funded startup, your salary will have both cash and ESOPs.
- Nov 21, 2022
- 2 min
ESOP for early employees
Startups give ESOPs to employees to compensate for the risk. ESOPs can yield a fortune if the startup you joined becomes successful.
- Oct 13, 2022
- 2 min
Angel Syndicates vs Angel Investors
A syndicate is a collection of angel investors who invest together in early-stage startups.
- Aug 29, 2022
- 8 min
How to raise seed capital?
Raising seed investment is difficult. Luck plays a big part and you need patience and persistence to achieve it.
- Jun 6, 2022
- 2 min
Venture Capital vs Thrasio model for D2C brands
Raising capital is much more difficult than selling to D2C rollups. If can grow 10–20x with more capital, VC investment is the way forward.
- Apr 4, 2022
- 2 min
Selling your D2C Brand
The competition to acquire great companies is immense. Many D2C rollups have raised big capital to acquire the best brands.
- Feb 15, 2022
- 2 min
What is a good EBITDA for a D2C company?
Most Rollup (Thrasio clones) look for D2C companies with 15% – 25% EBITDA. They are not interested in companies with lower EBITDA.
- Oct 18, 2021
- 2 min
The evolution of early-stage startup investments in India
Startup investing has become mainstream in India. More Indians will invest in early-stage startups once the ecosystem further matures.
- Sep 20, 2021
- 3 min
How have Indian VC funds performed?
VC investments are illiquid with 5 to 8 years lock-in depending upon the fund. Thus, it requires a higher return than most investments.
- Aug 16, 2021
- 2 min
Big global startup IPOs in Q2 2021
Nine big startups came up with IPOs in Q2 2021. All are technology companies except Oatley (Oat milk maker) and Didi (Ride hailing company).
- Jul 26, 2021
- 2 min
How hedge funds are disrupting venture capital?
Out of the 10 biggest startup investors in H1 2021, 9 were traditional PE/Growth funds.
- Jun 7, 2021
- 2 min
Are we in midst of a startup bubble?
In the first 4 months of 2021, more Indian companies became unicorns (startups with at least $1 Bn valuations) than in the entire of 2020.
- Apr 30, 2021
- 3 min
India strategy for the world's highest-valued startups
The biggest startups will become more global with time. Then more global unicorns will come to India & Indian unicorns will expand outside.
- Feb 1, 2021
- 1 min
Why startups fail?
The top 3 reasons behind startup failures are running out of cash, building a product without any real demand and industry competition.
- Jan 11, 2021
- 3 min
How build an excellent investor deck?
An investor deck is the marketing document of your startup. Invest time in building a deck if you want to raise capital.
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