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Category Archives for Crowdinvesting 101

Top 7 Methods for Valuing Startups – Valuation (Part 2)

What are the top seven methods for valuing early-stage startups? In Valuation Part 2, we cover what those seven methods are as well as some pros and cons of each.

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Valuation of Early-Stage Startups – Does it Matter? (Part 1)

In Part 1, we cover what is valuation, why it is important (or is it?), the valuation optimization fallacy, and how to calculate common numbers such as pre-money vs. post-money and percentage ownership.

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Due Diligence 101 Building Header

Due Diligence 101 (Part 2) – The #1 Reason Why Startups Fail and How to Screen Deals

In part 2, we get into the #1 reason why startups fail, the 5T framework for early-stage crowdfunding deal screening, and how to get your free Crowdwise due diligence checklist.

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Checklist Manifesto Book Review

Gut vs. Checklists – Which is Better for Startup Investment Decisions?

A contentious topic among early-stage investors is the use of an objective list of criteria (ie a checklist) vs. using gut and intuition when making investment decisions. We will review Atul Gawande’s book The Checklist Manifesto and discuss relevant lessons for crowdfunding investors.

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Due Diligence 101 (Part 1) – Overview for Crowdfunding Investors

In part 1, we cover what is due diligence for investors, why it’s important, how much time to spend, and some resources to help crowdfunding investors get started.

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Crowdfunding Intermediaries – Funding Portals vs. Broker-Dealers

There are two types of equity crowdfunding intermediaries – they are called funding portals and broker-dealers. Find out what the key differences are and why investors should know the difference between the two entities.

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Crowdfund Investing vs. Angel Investing – 5 Ways They Differ

Equity crowdfunding is sometimes referred to as “micro-angel investing.” While it may have a lot in common with angel investing, there are also many differences for the crowdfund investor to be aware of.

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Key Differences of Rewards vs. Equity vs. Debt Crowdfunding

Equity, debt, rewards, or donation-based crowdfunding are all different ways to raise money from the crowd. Learn the differences between each type of crowdfunding.

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LLC vs C Corporation Investments – Tax Implications of Business Type

A very important but often overlooked aspect of investing in the private markets is how the type of business – LLC vs. C Corporation – can impact taxes. We discuss some of the tax considerations that investors should be aware of when investing in each business entity.

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IRR vs Exit Multiple Calculators

IRR and Exit Math in Reg CF Investing

Internal Rate of Return (IRR) and Exit (or Return) Multiples are key elements when starting out in equity crowdfunding. Learn what they are, why they are important, and how to calculate them.

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