One of the most exciting times when running a startup is the moment when you’re finally ready to go and get some seed funding. Raising funds isn’t just about the growth of your startup — once you start to get seed money, it’s a real validation of your startup. People are interested in you! However, you can’t just rush into looking for seed capital.
When it comes to SPAC vs. IPO, the fact of the matter is that the shell company SPACs are a lot faster and more nimble than traditional IPOs. The SPAC model is alluringly simple — unlike with a traditional IPO, you can start seeking investment capital right away, and decide where it’s going to go later.
SPAC investors are willing to hop aboard this wild ride because they’re assuming they’ll get something out of it — even if what they do get ends up being a surprise! Worse comes to worst, they can simply redeem their shares.
Getting acquired is a best-case scenario where both you and your investors can make a lucrative payday. Your company’s valuation will be based on several key factors:
“Choosing a person who will do a job the “easy way” and solve the difficult problem in front of them can be better than putting your most ambitious team on it. The hardest way is often not the best way. In fact, in the startup world, over delivering can be just as dangerous as under delivering when time and money are finite resources and a lesser solution would have solved the problem effectively.” — From entrepreneur.com
For most startups, managing their cash flow is the major challenge they need to overcome — many startup failures can be attributed to never getting a handle on their cash. Knowing how to manage burn rate can be an invaluable skill for any business.
At Punch Financial we specialize in providing high-growth companies with a modern accounting experience. Instead of hiring an in-house CFO at great expense, you can outsource your strategic needs to a firm with proven results for a fraction of the cost.
Enter Punch Financial. We work with plenty of young YouTube creators and businesses in the United States, and all clients gain the expertise of a CFO consultant, dedicated bookkeeper, and dedicated accountant at a monthly fee that is a fraction of the cost of an in-house team. Our team will set you on the path to true profitability by reducing your costs and helping your channels and business safely grow.
Many sheets of cash KPIs will start with gross profit. This is a pretty simple profit and loss metric to understand. Your company will have its net sale revenue — the amount of money it gains from its operations.