What do entrepreneurs need to understand about finance!? Why do they need finance tutoring!?
Often people think starting a business is simple. It is simple in many ways but as you get further into the business, there are important decisions to be made that will impact the long term sustainability, profitability and returns of the business / owners / investors. Here is a sample of terms you need to know when structuring investments:
- Pay to Play
- Anti-Dilution
- Liquidation Preference
- Protective Provisions
- Information Rights
- Registration Rights
- Redemption Right
- Conversion
- Right of First Refusal
- Restriction on Sales
- Voting Rights
- Vesting
- Employee Pool
- Proprietary Information and Inventions Agreement
- Indemnification
- Initial Public Offering Shares Purchase
- Precedent Conditions to Financing
- Drag
Be smart. Work with our finance tutor or our accounting tutor to get the basics right. Small decisions could make a large impact!