ASC 718 for Startups: An Overview of Accounting and Stock-based Compensation

As your company grows, you will need to prepare GAAP-compliant financials, and you will quickly find that you have to comply with Accounting Standards Codification topic 718, or ASC 718, which describes how to report stock-based compensation in your corporate accounting.
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What’s an “idea” worth? Understanding startup IP valuation and intangible assets

Increasingly, company value is attributable to intangible assets, like intellectual property—so how do we decide what IP is worth?
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Unicorn University: Which school produced the most startup unicorns

Which universities produce the most number of founders creating billion dollar companies ("Unicorn Founders")?
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Four Things to Consider When Splitting Equity

Splitting equity in an early stage startup lends itself to strange conversations. Hopefully this post will make those conversations less strange.
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Common Stock as % of Preferred Stock

We're asked about 409A valuation trends often, especially as it relates to the ratio between Common Stock and Preferred Stock. We decided to put a study together to cover this topic.
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Don't Sell Your Company for Common Stock!

Private companies are often acquired by other private companies. However, many private sellers end up with the Common Stock of the buyer, which is substantially worth less than assumed. Don't make that mistake.
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What is a Purchase Price Allocation?

A Purchase Price Allocation (“PPA”) is frequently required for tax and financial reporting following a merger or acquisition . However, a PPA can be much more than just an accounting exercise.
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PMV vs FMV vs Enterprise Value. Why Would Valuations Differ?

Understanding the difference between Pre-Money-Valuation and Fair Market Value and Enterprise Value can help you navigate fundraising and negotiation discussions. Finance degree not required.
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What is a 409A Valuation Report?

A 409A valuation report is a valuation prepared by an independent appraisal of the fair market value (FMV) of a private company’s common stock. 409A valuations allow private companies to comply with section 409A of the IRS tax codes which regulates non-cash compensations (stock and option grants).
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Valuation Glossary

409A Valuation, Fair Market Value definition, Enterprise Value vs Equity Value, DLOM, etc. Everything you need to know about valuations.
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