The Startup Station Blog

Finance & Strategy | Early-Stage Startups | Company Valuation | Financial Modeling

Five Most Common Financial Modeling Mistakes

Having reviewed hundreds of financial models across more than fifteen industries, I’ve identified five most common mistakes entrepreneurs make when creating their financials. In this article and the corresponding video, we discuss each of these mistakes in more detail so that you can learn how to...

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WACC vs Investors' Return

The difference between WACC, or Weighted Average Cost of Capital, and the investors’ return confuses many entrepreneurs, especially those with very little finance knowledge. Both are important valuation concepts and will definitely come up in your fundraising process. In this article and the...

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How To Estimate Demand For Early Stage Startups?

If you are a founder in the process of creating financial projections for your pre-revenue company for the first time, most likely you have two thoughts. Thought # 1: “This is hard”, and Thought # 2: “This is futile because, without any data, I can only guess what my sales would be!” Well,...

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Pros and Cons of Raising Money Via An ICO

Cryptocurrencies, or new investment vehicles of startups using blockchain technology, have gotten a lot of publicity recently, especially with the rise and fall of Bitcoin, the first cryptocurrency. Just in 2018, $21.5B was raised via ICOs, or Initial Coin Offerings. If you want to learn what an...

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Should You Raise The Same Amount Of Money As Your Comparables?

Many startup founders wonder whether they can use the funding needs of a comparable company as a guide to see how much money their company should raise. It seems like a good idea, but it is NOT! While comparables are very important and help you determine the exit, or the terminal, value of your...

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How To Evaluate Accelerators?

An accelerator is a school that helps entrepreneurs get their venture to the next stage. Most importantly, accelerators prepare founders for the Demo day where they can raise their next round of financing. These schools are most useful for founders with little startup experience or for foreign...

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Intro To Startup Financing

Do you have an amazing startup idea, but not sure how to fund it? Have you heard about equity and convertible debt, but completely confused how they work and which one is a better fit? In this article and the corresponding video, we introduce you to three main financing vehicles. Equity Equity...

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Cash vs. Income - Do You Know the Difference?

One of the most confusing concepts to understand for entrepreneurs with no finance background is the difference between cash and income. In this article we discuss the three reasons that drive the discrepancy. Reason #1: Non-Cash Expenses on the Income Statement The income statement is a...

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What Drives Startup Valuations?

There is a lot of confusion around what startup valuations are really based on. To start off, let’s understand what they ARE NOT based on: Numbers taken from the sky, or unjustified projections Wishful thinking Desired percent of equity that you “think” you should give away To drive the...

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What Do Investors Look For?

Investors don’t invest in products. They invest in businesses and, specifically, those businesses that have the potential of making them the most money. Some investors may have additional objectives such as to support women-founders or to invest in green technologies, but they are still primarily...

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