Learn how to value your startup equity and download our startup equity calculator to see what your equity could be worth. Calculate your startup equity value today.
It's important to understand how your percentage ownership and vesting impact the value of your equity — but at the end of the day, the value of your equity is more closely linked to the success of your company. In other words, the size of the pie is far more important than your par...
Ideation — The person who came up with the main value proposition of the company often deserves the largest portion of equity ownership. This is not always the case, however. Actual, concrete contributions of capital and sweat equity, for example, maybe more valuable to your startup than one...
To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. The more scarce a supply (e.g., your equity in a hot new patented technology business), the higher the demand (e.g., multiple interested investors competing ...
Learn how to allocate shares in a startup, from founder equity to employee stock options, vesting schedules, and dilution risks. Find expert legal insights here.
Mar 13, 2025 — How to split equity with co-founders, investors, advisors, and employees the right way. A comprehensive guide for startups. — by Jason Atkins, Co-founder & President at Cake Equity
Startup valuation methods allow you to assign a dollar value to your company, whether based on discounted cash flows or its similarity to successful businesses.
Enterprise Valueis the value of the company’score business operations(i.e., Net Operating Assets), but toALL INVESTORS(Equity, Debt, Preferred, and possibly others) in the company. By contrast,Equity Value(also known as the Market Capitalization or “Market Cap”) is the value ofEVERYTHING...
However, it's not going to capture intangible factors like brand value or market potential. 4. Discounted cash flow (DCF) analysis DCF analysis is the practice of estimating the present value of a startup’s future cash flows, discounted back to a present value using a ratio that reflects ...
Equity structure design is the most important internal business model of a company and related to corporate governance. Equity design of early-stage startups mainly involves two essential issues: One is how to make use of a reasonable equity structure to ensure the founder's control over the co...