#fundraising
Fundraising accounting and investor fund tracking
Preferred shares the holders can put back sit in temporary equity, not equity — and quarterly accretion shrinks earnings available to common stock.
Rule 147 lets a local company raise unlimited capital from in-state residents only; Rule 504 allows up to $10M from anyone but keeps state filings.
A 1x non-participating liquidation preference pays investors back before common sees a dollar — participating preferred double-dips on top.
Participating preferred pays investors twice — preference first, then a pro-rata share. Non-participating pays only the greater of the two.
Section 5 bans pre-filing offers, defined as any publicity conditioning the market. What founders may say before filing, while waiting, and after pricing.
A traditional IPO raises $100M+ but costs 5-7% in fees; direct listings and reverse mergers are faster and cheaper but raise no capital.
Broad-based weighted average reprices preferred stock partway to a down round's price; full ratchet resets it fully — founders absorb the difference.
Venture-track founders should pick Clerky's lifetime plan for SAFEs and options; Atlas wins on speed plus banking, Firstbase on non-US onboarding.
ASU 2016-14 cut nonprofit net assets to two classes and added a liquidity note naming spendable funds — read the columns and the note before the total.
Protective provisions veto company sales and new debt; pro rata, information rights, and side letters decide who buys, sees, and gets special terms.
A Magic Number above 1.0 means each S&M dollar buys more than a dollar of ARR — compute it with the one-quarter lag, then check the Default Alive test.
Post-money equals pre-money plus the investment — and which number a term sheet quotes decides whether a $1M check buys 20% or 25% of your startup.
