The Startup Magazine

SEPTEMBER 10, 2019

Compared to Accounting, Finance is ruthlessly forward looking. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. The basic lesson that founders can learn about asset valuation is that Accounting is past and Finance is future. Asset valuation.

Founder 117

Founder Valuation Dividend Startup 117

Berkonomics

APRIL 26, 2018

If fixed expenses, especially payroll, are paid out before cash is received from services or shipments, the company is financing its growth with ever-increasing working capital needs. Cash and the value of your business. A fast-growing but undercapitalized company is not highly valued in an acquisition.

Dilution 90

Dilution Acquisition Early Stage Book Value 90

Berkonomics

FEBRUARY 7, 2011

If fixed expenses, especially payroll, are paid out before cash is received from services or shipments, the company is financing its growth with ever-increasing working capital needs. Running out of cash denigrates the very value of a business, reducing greatly any bargaining power with suppliers or acquirers.

Dilution 66

Dilution Acquisition Early Stage Book Value 66