Category: Startups
Factors Affecting the Capital Gain in Startups
Exiting a startup is the last, most important, and most challenging step in the management of a venture capital fund and determines its Capital Gain. But what are the factors affecting the capital gain in startups? In previous posts, we discussed the concept of startup exiting, its importance for both parties, and exit options. This […]
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Digital Marketing Consultant: What You Need to Save Your Online Business
You may have unique ideas for starting your own online business or may think about expanding your traditional business via cyberspace. If you are still unsure about building your online startup, be sure to read to the end of this article. We will help you create your online business. Unfortunately, many businesses that enter cyberspace […]
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Venture Capital History From Venice and Maritime to the Us and the 2008 Crisis
The Advantage of Loan Over the Shares in Financing For a long time in the history of capitalism, entrepreneurial activities were financed through loans or credits. The following are some of the reasons why loans were preferable over buying stocks: Lack of transparency in executive and financial operations (revenue, profits generated, etc.) and inefficient informational […]
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How to Set KPIs: Avoid KPI Challenges
In previous blog posts, we reviewed the most important features of proper startup metrics or kPIs and five indicators that you should not neglect to observe. Here, we intend to discuss setting appropriate KPIs considering the challenges ahead. In other words, in this article, we examine the challenges that affect selecting a key performance indicator. […]
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How to Split Equity Among Co-Founders
Disagreement between startup founders over stock share is one of the most common issues in early-stage startups. Noam Wasserman, the American academic, states that about 65% of startups fail because of disagreements between founders. One of the critical factors that produce conflicts between the founders is disagreement on how to split equity based on their […]
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Employee Equity Plan: Guide to Shares Allocation
In previous articles on startup stocks, we talked about the most important parameters in how founders distribute startup stocks among founders. We also discussed how founders gradually allocate shares to individuals and employee equity schedules. This article will discuss the employee equity plan, its history, and real examples of how startup staff get rich after […]
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Startup Employee Equity; When to Give Shares to Key Employees?
In previous articles, we looked at stocks, preferred stock, vesting schedule and essential parameters in stock splitting between founders. In this article, we discuss employee equity and when it should be awarded. To determine when to allocate shares to startup employees, we need to consider each startup’s growth stage. Pre-Seed In the pre-development or very […]
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Difference Between Common Stock and Preferred Stock
The offering of preferred stock entails certain tax breaks for companies. For this reason, company managers are usually eager to offer this type of stock and attract preferred shareholders. In this article, SOJECT compares ordinary and preferred stocks and examines the characteristics of each. But first of all, we have to see what stocks are. […]
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What Is a Convertible Note?
Simply put, a convertible note is a particular type of short-term loan that has the potential of converting into a stock. In the case of ordinary loans, the borrower repays both the principal and the interest at the time of repayment. In contrast, in a convertible loan, the lender can receive a portion of the […]
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Financial Model Definition, Component, and Benefits
Financial Model Definition and Component As mentioned, a financial model is a tool for analyzing current performance, comparing it with the past, and predicting the startup’s financial performance. The founders design financial model based on historical financial data, assumptions, market and industry facts related to the startup, profit and loss statements, balance sheet, and cash […]
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