What is Floor and Cap in Business Startup Valuation for Fundraising

In the world of startup fundraising, floor and cap are two essential concepts that play a critical role in determining the valuation of a company. Floor and cap are used to establish the minimum and maximum valuation of a company, respectively, and are typically used in convertible note investments and equity financing rounds. In this [...]

Term Sheets vs. Shareholders Agreement

As a business startup in India, you may have come across the terms "Term Sheet" and "Shareholders Agreement." While both are important legal documents that play a significant role in the growth and success of a startup, they serve different purposes. In this blog post, we will explore the key differences between Term Sheets and [...]

Avoiding Common Pitfalls in Startup Valuation

Starting a business is a complex and challenging process, and one of the most critical components is accurately valuing your startup. Valuation is essential as it sets the stage for securing funding, negotiating with investors, and establishing the value of your business. However, without proper knowledge and experience, it is easy to fall into common [...]

The Importance of Accurate Valuation for Startup Funding

A guide for entrepreneurs on how to value their business for fundraising purposes. The Importance of Accurate Valuation for Startup Funding: A guide for entrepreneurs on how to value their business for fundraising purposes When it comes to raising capital for a startup, one of the most important aspects to consider is the valuation of [...]

Things to focus as a Startup Founder

you want to ensure that your business is valued as highly as possible. A higher valuation can make it easier to secure investment and can also give you more negotiating power when it comes to partnering with other companies or selling your business. Here are seven ways you can work towards a bigger startup valuation [...]

Valuing an Early Stage Startup Company

Valuing a business startup can be a tricky and difficult task. Determining the worth of a startup is often a difficult challenge for those who are not familiar with the process. The process of valuing a startup is an important skill for any entrepreneur or business owner who is looking to raise capital or sell [...]

Sources Of Capital For A Business

Before going for the sources, let’s talk a little bit of capital. What is Capital for a Business: The definition of capital in business refers to anything that the owner or founder can utilize and use to generate revenue or more value. One can define capital in different forms such as cash or other assets [...]

Bootstrap your Start-up: Walkthrough to self-funding your business

Almost all the start-ups look out for Venture Capital, Angel Investors and co-founders when they start the business to get the company up and running. But like there’s a saying “Pull yourself up by the bootstraps.” Which means in modern English to do something without anyone’s help. This is how the term “Bootstrap Funding” come [...]

Everything about Residual Income Valuation Model

One of the most popular options for valuing businesses is The Residual Income Model or the residual income valuation model. Very simple, this model assumes that the value of the company is equals to present value of all future residual income and discounted at the cost of equity. In comparison to the other methods such [...]