Chapter 1

Financial Fundamentals for Startups

Understanding the income statement, balance sheet, and cash flow statement

medium • 1 min read

Cash burn rate and runway calculation

medium • 2 min read

Difference between cash and profit

medium • 3 min read

Break-even analysis and unit economics

medium • 4 min read

Estimating initial capital requirements

medium • 5 min read

Chapter 2

Bootstrapping and Alternative Financing

Pros and cons of bootstrapping

medium • 1 min read

Personal savings, credit cards, and family/friends (FFF)

medium • 2 min read

Crowdfunding models (Reward, Donation, Equity-based)

medium • 3 min read

Factoring, leasing, and trade credit

medium • 4 min read

Grants, incubators, and university funds

medium • 5 min read

Chapter 3

Angel Investors and Venture Capital

Angel investors: Profile, motivations, and networks

medium • 1 min read

The Venture Capital (VC) industry structure and fund dynamics

medium • 2 min read

Stages of VC funding (Seed, Series A, B, C)

medium • 3 min read

The pitch deck and presenting to investors

medium • 4 min read

Due diligence process of VCs

medium • 5 min read

Chapter 4

Valuation Methods for Startups

Challenges of valuing early-stage companies

medium • 1 min read

Berkus method and Scorecard valuation

medium • 2 min read

Venture Capital method of valuation

medium • 3 min read

Discounted Cash Flow (DCF) for startups

medium • 4 min read

Pre-money and post-money valuation calculations

medium • 5 min read

Chapter 5

Term Sheets and Structuring Deals

Anatomy of a term sheet (Economic and Control terms)

medium • 1 min read

Convertible notes and SAFE agreements (Simple Agreement for Future Equity)

medium • 2 min read

Liquidation preferences, anti-dilution, and participation rights

medium • 3 min read

Board seats, protective provisions, and voting rights

medium • 4 min read

Negotiating with investors

medium • 5 min read