Topic
28 posts tagged “Startups”.
Kurumi · · 5 min read Net revenue retention measures how much recurring revenue a company keeps and grows from existing customers over a year. Formula, examples, and NRR vs GRR.
Kurumi · · 4 min read Pro rata rights let an investor buy enough of a startup's next funding round to keep their ownership percentage from shrinking as new shares are issued.
Kurumi · · 5 min read Carried interest is the share of a fund's profits its managers keep, typically 20%, paid only after investors get their capital back. Here's how it works.
Kurumi · · 5 min read Escrow is a neutral third party that holds money or assets until agreed conditions are met. How it works in real estate, M&A, and startup deals.
Kurumi · · 4 min read A SAFE is a simple agreement for future equity — cash now in exchange for shares later, without setting a valuation or accruing interest like a note.
Kurumi · · 4 min read A bridge loan is short-term financing that covers the gap between an immediate cash need and a longer-term source of funds, at a higher interest rate.
Kurumi · · 6 min read Mira Murati's Thinking Machines Lab is in talks to raise $1B at a $40B valuation led by Accel — more than triple its seed price. The deal and what to watch.
Kurumi · · 4 min read A clawback provision lets a company reclaim already-paid compensation or equity when specific conditions, like fraud or a restatement, are triggered.
Chisato · · 5 min read AI training-data startup AfterQuery hit a $3.2B valuation about five months after a $300M Series A, making it Y Combinator's fastest company to reach unicorn status.
Kurumi · · 5 min read QSBS lets founders and early employees exclude a large share of capital gains from federal tax when they sell qualifying startup stock. How it works.
Kurumi · · 4 min read An earnout is a deal structure where part of an acquisition's price is paid later, contingent on the acquired company hitting agreed targets.
Kurumi · · 4 min read A unicorn is a privately held startup valued at $1 billion or more, based on its most recent funding round — not its revenue or profit.
Kurumi · · 5 min read An 83(b) election lets you pay tax on restricted stock at grant instead of at vesting, locking in a low valuation while the risk is high.
Chisato · · 6 min read Nvidia is reportedly in talks to invest in Perplexity at a $30B+ valuation as the AI search startup's annualized revenue tops $750M. Deal terms and analysis.
Kurumi · · 4 min read Burn rate is how fast a startup spends cash; runway is how long its cash lasts at that rate. How the two numbers are calculated and why they matter.
Kurumi · · 5 min read ISOs get preferential tax treatment but only for employees under strict limits; NSOs are simpler and more flexible but taxed as ordinary income at exercise.
Kurumi · · 5 min read A down round is a funding round priced below a startup's prior valuation, diluting existing shareholders and resetting terms.
Kurumi · · 4 min read Venture debt is a loan for VC-backed startups that adds runway without diluting equity, usually paired with a recent funding round.
Kurumi · · 5 min read A liquidation preference sets who gets paid first, and how much, when a startup is sold — often the term that most shapes investor and founder payouts.
Kurumi · · 5 min read A term sheet outlines a proposed investment's key terms — valuation, ownership, control — before lawyers draft the binding legal agreements.
Kurumi · · 4 min read A cap table is the ledger of who owns what percentage of a company. How it tracks founders, investors, and options, and why it gets messy fast.
Kurumi · · 4 min read A 409A valuation sets the fair market value of a private company's common stock, setting the strike price for employee stock options. How it works.
Chisato · · 5 min read AI video startup Higgsfield raised $400M at a $5.4B valuation, led by DST Global with Goldman and Intel. Revenue hit $700M annualized, up from $20M a year earlier.
Kurumi · · 5 min read Equity dilution is the reduction in existing shareholders' ownership percentage when a company issues new shares. How it happens and what to watch for.
Kurumi · · 4 min read A SAFE is a startup funding contract that converts an investor's cash into equity at a future priced round, without interest or a maturity date.
Kurumi · · 4 min read A convertible note is short-term debt that converts to equity at a future funding round — how it works and how it differs from a SAFE.
Kurumi · · 4 min read RSUs grant actual shares on vesting, while stock options grant the right to buy shares at a fixed price. How the two forms of equity compensation differ.
Kurumi · · 4 min read Vesting is the schedule by which an employee earns full ownership of granted equity over time. How cliffs, vesting periods, and acceleration work.
