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5 Financial Concepts Every Startup Founder Should Know

The Startup Magazine

There is a myth among first time tech founders that product is everything. Here are five financial concepts that every startup founder should know to build an everlasting company. The basic lesson that founders can learn about asset valuation is that Accounting is past and Finance is future. Asset valuation. venkatarag.

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Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. Being fluent in these concepts helps in many settings, such as negotiating terms with potential investors, co-founders and key employees.

Dilution 162
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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Since inception this lodging marketplace (note 1) has enabled 825 million guest stays in over 200 countries with a cumulative booking value of more than $110 billion.

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Business Valuation: Determining The Worth Of A Company

YoungUpstarts

Simply put, this approach lists a company’s total assets, deducts total liabilities, and determines overall value based on the difference between the two. Also referred to as Book Value . With a properly valued company, retirement to that tropical paradise could be just around the corner!

Valuation 133
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The 4 Commitments To Grow Your Reach Online

Duct Tape Marketing

She is the Founder and CEO of Weaving Influence. This full-service marketing agency specializes in digital and integrated marketing services and public relations for book authors, including business leaders, coaches, trainers, speakers, and thought leaders. That's hubspot.com/artificial-intelligence. (01:14): This is John Jantsch.

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Should you include your sweat equity in a business plan?

Berkonomics

But when forecasting the ultimate viability of a business, many times an entrepreneurial founder uses a low, unsustainable salary rate for him or herself in order to show early breakeven. But the tax effect would be the same if audited – you would owe tax on the booked value even if not paid in cash. What is the solution?

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Include your labor value in your plan.

Berkonomics

But when forecasting the ultimate viability of a business, many times an entrepreneurial founder uses a low, unsustainable salary rate for him or herself in order to show early breakeven. But the tax effect would be the same if audited – you would owe tax on the booked value. And that is the quandary for investors.

Salary 96