Offering employees stock options is an excellent talent retention strategy but take the time to understand the difference between RSU and ESOP. Restricted Stock Units (RSUs) and Employee Stock Option Plans (ESOP) are quickly becoming popular with startups having limited capital. You can offer equity as part of compensation packages to not just reward them […]
What is ESOP? Before we look at ESOPs under Companies Act, 2013 let’s first understand the meaning of ESOPs. Employee Stock Option Plans, or ESOPs, incentivize employees for performance. Many firms use ESOPs as a retention strategy to retain employees in the long term. When a company awards an ESOP to an employee, they get […]
The startup ecosystem in India has rapidly grown in recent years and has become one of the fastest-growing startup scenes in the world. To woo more investors and entrepreneurs, the tax benefits for startups in India have also gained a significant momentum over the last few years. With a large and young population, a growing […]
Introduction Starting a business comes with its unique risks and rewards, such as liquidity risk. Also, for many entrepreneurs and business founders, the ultimate goal is to make money. Whether you are still in college or sitting in an office cubicle and contemplating a career change to make more money, the idea of launching or forming […]
Introduction The Indian economy is booming and on track to become one of the biggest in the world. As new startups enter the market, we’ve seen a massive change in the business landscape over the last few years. As a result, India has become the third startup ecosystem in the world after the US and […]
Valuing startups with no revenue can be challenging, both for the investors and the founders. There are many things that come into play, such as the size of the opportunity, founding team, product, and marketing risks. In many cases, valuation of startups is more of an art than science. You just cannot arrive at a […]
A venture capital (VC) firm is a financial institution that invests in early-stage companies with long-term growth potential. How VCs make money is a question of interest to many entrepreneurs and business owners, as it can help explain why venture capitals are such an essential part of the startup ecosystem. With that in mind, let’s […]
Introduction You can look at revenue-based financing through the lens of an investor and a lender. Revenue-based financing (RBF) helps investors tap into investment opportunities with high returns. However, these opportunities come with risks since late repayments impact revenue growth. Conversely, a revenue-based financing model is not for every company. RBF model is suitable for […]
What is Phantom Stock? Phantom Stock (also known as shadow stock) is increasingly becoming a new way of compensating and retaining key employees. Thanks to the recent start-up boom, India is now home to more than 100+ unicorns. In simple terms phantom stocks are like ‘mock-stocks’. Employees do not own the stock but get the […]
If you are building a company, then, raising funds is something that constantly crosses your mind. Raising funds is one of the crucial ways that are going to fuel the growth of your business. But, it does not start with preparing a pitch deck. It starts from the very first day you had a business […]