The Pros and Cons of Working for Equity

Image credit:Alamy It's practically the stuff of startup lore at this point. Entrepreneurs have long attempted to bootstrap a startup by offering equity to developers and other key players instead of a steady paycheck. The startup gets the expertise it needs even before it has investors or revenue, and employees get the chance to cash …

The Art and Science of Company Valuations (Infographic)

Image credit:Shutterstock Instagram, Spotify, Square, Pinterest, and the list goes on: It's starting to seem like billion-dollar startup valuations are a dime a dozen. But how does a young company get a billion-dollar price tag? The below infographic by San Francisco-based startup organization Funders and Founders details how a startup is typically valued. A valuation …

Vesting: A Founder’s Need to Earn Equity

Image credit: zzzack Vesting is absolutely standard in venture deals. It is predicated on the notion that the founding and management teams must earn their equity ownership by contributing to value creation through so-called "sweat equity," or hard work. Vesting requirements address free-riding issues by mandating a commitment to the enterprise — a requirement around …

Don’t Let Student Debt Hogtie Your Business

Image credit:Pixabay Reader Resource Position yourself for growth in 2017—join us live at the Entrepreneur 360™. Flash Sale—save up to $200 on registration. Ends Thursday. Secure Your Seat » Starting a business can be challenging, especially from a financial perspective. When you add an abundance of student loan debt to the equation, the very thought of …

U.S. Consumer Getting Stronger, Loan Delinquencies Continue to Fall

Image credit:Reuters/Jessica Rinaldi U.S. consumers continued to pay down debt in the first quarter of 2013 as household wealth rose above its pre-recession peak, the American Bankers Association said on Tuesday. A composite ratio, which tracks delinquency rates for eight loan categories, fell to 1.7 percent of all accounts from 1.99 percent the prior quarter, …

New Student Loan Law Offers Short-Term Benefits and Potentially Long-Term Headaches

For aspiring young entrepreneurs, deciding whether to attend college to study business and entrepreneurship often comes down to dollars and cents. That decision may soon require a few less pennies — but possibly only for the time being. Today, President Obama is expected to sign into law a bill that would both reduce interest rates …