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Hi fellow founders! Here's a tip from the best Fabio-themed startup finance page out there, OnlyCFO: If you have the means, exercise your stock options early! and read up on QSBS. Better yet, find a professional to help you with this! (Message me for recommendations if you don't have someone in mind.) The entire article ( https://lnkd.in/eaccXw89 ) is worth your time, and I get a lot of value out of the Substack subscription. There are a lot of things to keep tabs on in the world of startup finance and a little planning for success could mean a better outcome when it arrives.

Forget December, for startup founders, the real year-end is closing the books! This month, we wear the (often stressful) CFO hat. Working with my CA, I realized there's so much founders need to consider. Sharing, some key aspects to keep in mind for a smooth financial year-end close & a fresh start next year! How do YOU handle your startup's finances? Let's me know in the comments below! #startuplife #finance #foundertips

How I Refused to Stay Stuck Within the Confines of Being a CA Being a Chartered Accountant has its merits. But I refused to stay confined by the title. Why? Because I saw a bigger picture. A greater impact. I chose to work with startups. To help them raise capital. To craft compelling stories. To build robust financial models. But I didn’t just stop there I still continue to evolve. That’s why I’ve added Tony as our CIO. And brought in different fundraising advisors. Because the vision is clear. Raise $200M in 12 months. We’re not just dreaming. We’re executing. With a team aligned to this vision. Each one bringing expertise. Each one contributing to the goal. It's about moving forward. About making real impact. About redefining what it means to be a CA. And most importantly, about creating a legacy. Have you ever felt the need to break out of your professional confines?

I sold my last venture-backed startup for a healthy 9-figure amount But at the time, I knew nothing about money I'm teaching a free workshop next Wednesday for anyone else who could be in my shoes in a few years: Personal Finance for Startup Founders Sign up here - https://lnkd.in/e5G2v5Kw Here's what we will cover: - How much to pay yourself as a startup founder - How to maximize value of stock grants to pay less in taxes - QSBS - Using estate planning as a tool to reduce your tax bill - Secondaries - Negotiating big financial events (funding / acquisition etc) & a live Q&A at the end We'll also send a replay to everyone who signs up: https://lnkd.in/e5G2v5Kw

Thank you SIBB e.V., it was a pleasure! On Tuesday, I had the honour to do a workshop on Financial Mastery for Startup Success at the SIBB e.V. The workshop was focussed on providing the participants an understanding of the basic tools required to understand, evaluate, and plan their company's financials. During my time as a restructuring consultant, we received many mandates that were heading towards bankruptcy and here are three things I learned, that are vital to know when building a company on a sustainable basis: 1️⃣ Build a solid foundation: When building a company, it is vital to understand what you will need to spend money on and how much, over the next few years. A solid financial model will show you this vital information and allow you to play around with the numbers to understand how current changes will affect your financial situation in the future. 2️⃣ Understand the numbers and their correlation: It is absolutely vital to understand all your numbers and how they relate to each other. • If you want to produce 1/100/1000 more units of your product, how much will this cost you? • If you would acquire 100/1000/10,000 more users to your app or platform today, how would this impact your costs and revenues immediately and in the future? • If you allocate more budget to marketing, where will you lose budget for other topics? 3️⃣ Numbers don't lie! A company's financials always show the truth about a company's performance. If the numbers don't make sense, either something is wrong in your operations, someone didn't gather the right data, or someone didn't book the data correctly. Make sure to always pay close attention! Do you have a story where looking at the numbers made you realize or discover something? PS: Thank you Christoph Körner for taking a picture with me! 😀 #sibb #startup #finance #nxtmilestone

Here's the reason why financial literacy matters (a lot more than you think): The terms of a deal are usually way more important than the actual price. I'll give you an extreme, oversimplified example. Let's say your company is worth $30m and I make you an offer for a BILLION dollars. If we stop right there, that would make 1)me a total idiot 2)you one of the most successful and astonishing startup exits. But that would be too easy, wouldn't it? Because here's what's actually written in my offer letter when you look at the actual terms : "The founder will receive $1bn in cash only upon the successful completion of the following event: a $10bn exit" What actually happened is : I bought your company for free and even though I agreed to pay you $1bn *in theory*, the probability of that happening in the future is so incredibly low that you would've gotten a better deal selling the company for crickets. Now you won't see THAT in the real world (or call your lawyer right away)... But I always try to keep in mind : As long as you have 100% control over the terms, you can agree to virtually any price... And still win.

Who likes surprises just in time for a closing? How about unexpected fees or costs on the day of closing ... when it may be too late to address? 🤦♂️ Instead...GET YOUR CLOSING INVOICES AS FAR IN ADVANCE OF CLOSING AS POSSIBLE Your title company should have a close-to-accurate invoice available soon after a transaction is started. There may be additional fees as a file progresses to closing, but nothing out of left field. I like to upfront and don't wait for the day of closing for you to see my title bill. If you have any questions or concerns, I want to address them NOW ... and not wait for the day of closing, when you dealing with 100 other things! #titleinsurance #titlecompany #startupvibes

😎Cannot believe I could ever say these words: I have started to love Accounting/Finance courses! 🙂Accounting for Entrepreneurship: From Startup through IPO/Exit is one of the best courses which I am lucky to take this quarter at Chicago Booth! ❤️Thanks Prof. Ira Weiss for creating an awesome course! 😎This course provides the core set of tools and strategies that would be used by the Chief Financial Officer at a private, entrepreneurial company. The course follows the life-cycle of a company that begins life as a start-up, and covers the accounting-related financial metrics that are needed by an entrepreneur. 👉🏻Topics covered in this class are relevant at the earliest stages of a business, such as setting up the initial accounting infrastructure, through to the company’s exit. The exit would typically be to a strategic buyer, a private equity firm or via an IPO/SPAC/Public listing. 😇Looking forward to learning a lot from this awesome course in the weeks to come! #uchicago #chicagobooth

Securing a term sheet in today's environment is challenging, but valuation isn't everything. Watch out for these red flags: 1) Excessive control provisions that limit your autonomy. I have seen veto rights, controls on hiring and firing, control on future funding rounds, or overburdensome board constructions. 2) Unreasonable deadlines for milestones. I have seen unsophisticated investors set key milestones in an attempt to “encourage” the founders to deliver, but in reality rush the team leading to mistakes and regrets. 3) Onerous liquidation preferences that can severely dilute founders. Liquidation preference determines how proceeds from an exit are distributed. I have seen 3x or worse on some term sheets. 4) Misaligned incentives prioritizing investor gains over company health. I have seen high interest rates, ratchet provisions that increase investor ownership, and even uncapped returns. 5) Burdensome reporting requirements that distract your team. I have seen groups ask for audited financials monthly and constant KPI updates. Don’t be afraid to negotiate or walk away from a term sheet. The terms you agree to now will impact your business for years to come. Any other red flags you've seen that would be helpful for founders to know? #venturecapital #startups #founders #termsheets #fundraising #earlystage

From startups to mature businesses, credit unions are the secret ingredient behind small business dreams coming true. Our latest blog post by Mike Horrocks reveals the incredible ways credit unions support and empower small businesses throughout their journey. 🚀💼 👉 Discover how credit unions provide tailored solutions, expert knowledge, and vital resources to help startups thrive and grow. 👉 Learn about the collaborative partnerships between credit unions and the Small Business Administration (SBA) that drive businesses to the next stage of success. 👉 Dive into the unique insights credit unions offer when it comes to solving complex issues like repricing in Commercial Real Estate (CRE). Don't miss out on this incredible blog post! Read it here now: https://lnkd.in/gduryQFd #SmallBusiness #WhyNot