What is the “Cap Table” (Capitalization Table) and why should it be managed carefully?
It is a spreadsheet or record that shows the detailed distribution of company ownership, identifying who the shareholders are
How is the “Market Multiples” valuation method (Comparable Companies) used?
It consists of valuing your company by applying a multiplier (revenue multiple, EBITDA multiple) based on recent transactions
How does the post-money valuation affect the founders’ dilution percentage?
Dilution determines the percentage of the company that founders give up to new investors. It is calculated by dividing the invested capital…
What is the difference between “Pre-money” and “Post-money” valuation?
Pre-money valuation: The value of the company agreed upon between founders and investors before the new capital injection is formalised and introduced
What does the concept of “Smart Money” refer to?
It refers to investment that provides added value that goes far beyond a simple capital injection into a bank account.
What is “Corporate Venture Capital” (CVC)?
It is a form of venture capital where large corporations or multinationals create their own funds to invest in startups
When is an SME ready for a Series A round?
A startup or SME enters Series A when it has solid and recurring metrics (for example, stable monthly recurring revenue or MRR)
What characterizes a “Seed” round?
At this stage, the company already has a launched product or service and seeks to demonstrate “Product-Market Fit”
What is a “Pre-Seed” investment round and what is financed in it?
It is the earliest stage of funding. Capital usually comes from the founders themselves, “Family, Friends and Fools” (FFF)
What is the real difference between Venture Capital (VC) and Private Equity (PE)?
Venture Capital: Invests in companies at early stages or in rapid growth (startups) with a technology…
