The Startup Station Blog

Finance & Strategy | Early Stage Startups | Company Valuation | ICOs

Overview Of Cash Startup Costs

As a startup founder, you have to become familiar with basic accounting concepts. In this article, we discuss how to categorize various cash expenses from your Income, or Profit & Loss, Statement properly. Not All Costs Are Cash Costs Not all costs are cash costs. You may wonder why you...

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Five Most Common Mistakes in Pitch Decks

Mistake #1: Inaccurate calculations of market size Many founders incorrectly calculate the size of their company’s addressable market. When figuring out your market size, you should: Differentiate between the U.S. and global market sizes or a market size of your home country and the global...

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Simulations vs. Financial Planning

For pre-revenue companies, forecasting demand is very challenging because there is no financial history. To overcome that problem, some startup founders use random number generation as a tool to “logically generate” demand for their product or service. In their minds, this strategy is their best...

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Financial Model As An Evaluation Tool

All startup founders must create financial projections for their companies at some point, especially as they embark on the fundraising journey. That is true regardless of them having the finance knowledge to do it correctly or their company having the financial history to make their job...

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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, we discuss each of these mistakes in more detail so that you can learn how to model your company...

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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, we will...

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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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