#fundraising
Fundraising accounting and investor fund tracking
How venture debt and recurring revenue loans work in 2026 — pricing in the 10-13% range, warrant coverage of 0.5-1.5%, end-of-term fees, MAC clauses, and when each instrument actually extends runway versus trapping founders before the next equity round.
ASC 606 requires SaaS companies to recognize revenue as the service is delivered, not when cash is collected. This guide walks through the five-step model, the deferred revenue schedule auditors scrutinize, and the six recurring mistakes that trigger restatements during fundraising diligence.
D&O insurance for startups in 2026 typically runs $3,500–$10,000 per year for $1M–$3M of coverage; Series A term sheets routinely require $3M–$5M within 60–90 days of close. The most common claims at sub-100-person companies come from employment disputes, not securities allegations.
A practical guide to fiscal sponsorship — how Model A (9–15% fees) and Model C (4–10% fees) differ, how donations flow legally, what an agreement must cover, and when a project should graduate to its own 501(c)(3).
Track the SaaS metrics that win term sheets in 2026: LTV, CAC, NRR, churn, CAC payback, and Rule of 40. Includes benchmarks and calculation traps to avoid.
A 409A valuation is the IRS-recognized appraisal that sets the strike price on every option grant. Without one, founders risk 20% federal excise penalties, premium interest, and California's 5% piggyback tax — all falling on the employee.
A SAFE is a contract granting future equity with no maturity or interest, while a convertible note is a loan with 4–8% interest and an 18–24 month maturity that becomes due if no priced round closes — and Y Combinator's 2018 post-money SAFE locks each investor's ownership at Investment ÷ Cap, dilution that hits founders, not prior SAFE holders.
A practical guide to managing a startup cap table from incorporation to exit — covering SAFEs, priced rounds, option pool sizing, 409A valuations, vesting mechanics, dilution math, and the diligence-ready habits that prevent costly equity surprises.
Learn how to manage your startup's finances effectively to attract investors and ensure financial readiness for fundraising rounds. This guide outlines essential accounting practices that can make or break your startup's success.
Understanding the right business entity type is crucial for entrepreneurs. This guide outlines the implications of different structures on taxes, personal liability, compliance, fundraising, ownership flexibility, and business credibility.
