We see this question a lot at www.StartUpProgram.com - LLCs and S corporations are “pass-through entities,” meaning that profit (or loss) is passed through to the *owners* as income, and is taxable as such. In contrast with C corporations, profit and loss are ascribed to the *business* and not the owners. Venture capitalists (VCs) want the profit/loss ascribed to the business and not them (the owners) because it allows losses to be used to offset future revenues for tax purposes. Learn more about this with a free demo of the SUP Platform at www.StartUpProgram.com or call (424) 299-8900 to schedule. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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We at www.StartUpProgram.com will sing the praises of Cap Tables until we're hoarse. Cap tables are analyses of a company's percentages of ownership, equity dilution, and value of equity in each round of investment. It's extremely important for making internal decisions, as well as attracting potential investors. Get more information about cap tables and startup guidance with the SUP Platform. Sign up for a free demo at www.StartUpProgram.com or call (424) 299-8900. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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From www.StartUpProgram.com - A cap table tracks the entire equity of a company, so as you might expect, it needs to track different kinds of ownership and investments. A key calculation within a cap table is the determination of post-money valuation after a Series A investment. Additionally, a good cap table will help founders model exit scenarios and liquidation preferences. Learn more with a free demo of the SUP Platform at www.StartUpProgram.com. You can also call (424) 299-8900. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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From www.StartUpProgram.com - To begin, the Board of Directors determines the Fair Market Value of a startup's Common Stock. However, if there is a change in that valuation (such as receiving a round of financing), the Board of Directors must get a 409A Valuation to determine the new value of the stock. Learn more about the legal and financial inner workings of startups with a free demo of the comprehensive SUP Platform at www.StartUpProgram.com or call (424) 299-8900. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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We've seen this mistake time and again with companies that have sought help from www.StartUpProgram.com. While we can certainly help fix the problem, it's MUCH easier to prevent it before it happens! Learn how to use our proprietary, battle-tested Debt Equity Model with the SUP platform, and avoid losing your own money and losing potential investors. Get a FREE demo of the SUP platform by signing up at www.StartUpProgram.com or calling (424) 299-8900. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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From www.StartUpProgram.com - Issuing stock to employees, contractors, and advisors can be done with varying methods and restrictions. Deciding the method in which to offer stock depends on how people are categorized by the IRS. Why? Because each method of offering stock falls into different taxation categories, particularly because of how each person is qualified within a company (employee, contractor, etc.). Learn more with a free with a demo of the SUP Platform at www.StartUpProgram.com (or by calling (424) 299-8900). #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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We at www.StartUpProgram.com (SUP) recommend that pre-seed investments be handled using SAFEs or convertible notes. In a later financing round, typically the next one, these loans will convert into shares in the company. The "FE" in SAFE stands for "Future Equity" – with the future equity being issued in connection with the later priced round of equity financing. Learn more at www.StartUpProgram.com and feel free to call us at (424) 299-8900 with any questions. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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From www.StartUpProgram.com - A convertible instrument is any security that can or will be converted into a different type of security. There are multiple types of convertible instruments, and they're often used by startups in earlier funding rounds because they cost significantly less in legal fees and they avoid having to answer the question: how much is an idea worth? Learn about this and more with the SUP Platform. Get a free demo at www.StartUpProgram.com or call (424) 299-8900 to schedule. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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From www.StartUpProgram.com - Yes! Most investors and VCs will only consider investing in Delaware C corporations because of the protections that C corporations and Delaware state law provide (such as receiving preferred stock for their investment and utilizing NVCA forms/templates). For more on this and other startup questions, consider trying the SUP Platform - the only comprehensive and affordable service to get you from the idea stage to a venture ready startup. Get a free demo by visiting www.StartUpProgram.com or calling (424) 299-8900. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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Yes, it does! Though the tools on the www.StartUpProgram.com (SUP) platform will teach you the basics of venture law and venture economics, we understand that there are a LOT of questions that may come up, especially those that are more specific to your business. Learn more about the SUP platform with a free demo at www.StartUpProgram.com, or by calling (424) 299-8900. #venturecapital #venturecapitalist #startupresources #startupsupport #oapc #startupformation #venturelaw #ventureeconomics #founders #captable #captables #foundingastartup #howtofoundastartup #howtoformastartup #startupfinancing #venturecapitalist #venturefinancing #startupfunding #venturefunding #entrepreneurs #startupacademy #startupprogram #startups #startuplaw #ventureready #startup
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Startups are full of dreams, enthusiasm and hard work but usually short on financing options. I can help you get up to $150K in funding to get your business off the ground. #startup #newbusiness #startupfunding #businessfunding #businessfinancing #smallbusiness
Love the deep dive here! Have you explored leveraging machine learning algorithms to predict funding success, streamlining the vetting process for both startups and VCs?