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Crucial Things You Need To Know About Your First External Audit For Series B

YoungUpstarts

by Bryce Welker, founder of Crush The CPA Exam. You are sure to be happy when your business reaches a Series B financing round because it usually means your company has a higher valuation. These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. 409A Valuations.

CPA 165
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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

This post is the third part of a three-part primer on convertible note seed financings. Part 1, entitled “ Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask) ,” addressed the basics. Part 2, entitled “ Convertible Note Seed Financings: Econ 101 for Founders ,” addressed the economics.

Finance 64
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Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. For example, let’s assume that the Series A investor has a $5 million, non-participating liquidation preference (with a 2x multiple) representing 30% of the outstanding shares of the company, and the company is sold for $100 million.