Monthly Archives: May 2026
How Much Equity Should Founders Give Away?
The honest answer: as little as you can reasonably give up without killing the round. Founders often underestimate how expensive early equity becomes later. At the beginning, equity feels cheap and cash feels scarce. If the company succeeds, that relationship flips. How Equity Dilution Works Equity financing means investors contribute capital in exchange for… Read More »
Startup vs. Small Business: What’s the Difference?
“Startup” and “small business” get used interchangeably all the time. They should not be. The difference is not size. It is intent. A startup is designed for rapid growth and scalability. A small business is usually designed for stability, profitability, and long-term operation. Those goals lead to completely different decisions about financing, hiring, structure,… Read More »
What Is Equity Financing?
Equity financing is the trade most founders make first: ownership for cash. The math is simple. The consequences are not. Unlike debt, equity does not get repaid. It stays on the cap table permanently, and the people receiving it gain economic and governance rights in the company. What Equity Financing Actually Means Equity financing… Read More »
What Is an Angel Investor?
Raise enough money and you will meet two species of investor: the angel and the VC. They write checks that look the same on a bank statement. Everything else about them is different. Angels are individuals. VCs are institutions. Angels usually write the first meaningful check; VCs often write the second. Angels make decisions… Read More »
Accredited Investors: What That Means and Why It Matters
You’ve got a great pitch and a friend who wants to invest. Sounds simple. It isn’t. Whether you can actually take their check — and how much paperwork comes with it — depends on whether they’re an “accredited investor.” That term is buried in securities law, but it shapes almost every early financing decision… Read More »
What Are the Pros and Cons of Accelerator Funding?
Getting into Y Combinator or Techstars is, for some founders, the validating moment that makes them feel like a real startup. It’s also a transaction. You’re selling roughly 6–7% of your company for a check, a network, and a Demo Day. Whether that’s a great deal or a bad one depends entirely on what… Read More »
What is the Difference Between a Startup Accelerator and Incubator?
The words “incubator” and “accelerator” get used as if they meant the same thing, but they don’t. They’re different programs serving different stages of company, with different trade-offs — one of which is whether you give up equity. Picking the wrong one wastes a year you don’t have, or costs you a chunk of… Read More »