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Startup funding and equity, explained

The terms that come up when you raise money or join a startup, each with a worked example and the Indian context.

Free toolStartup dilution calculatorHow much founders own after each round, including option pool top-ups, in ₹ or $.Open the calculator

Explainers

What is an acquihire? How talent acquisitions work
An acquihire is an acquisition made mainly to hire a startup's team. How the deals are structured, who gets paid, and the newer license-and-hire variant.
Startup funding stages: pre-seed to Series C, explained
What each startup funding stage pays for, what investors expect at each step, and how big rounds are in practice, from StartupReader's own funding data.
What is pre-seed funding? Sources, size and what investors want
Pre-seed funding is a startup's first outside money. Where it comes from in India and elsewhere, how it is usually structured, and what early investors look for.
Pre-money vs post-money valuation, with examples
Pre-money is what a startup is worth before new investment; post-money adds the new money. How to calculate both, investors' ownership and the option pool effect.
409A valuation explained, and India's ESOP equivalent
A 409A valuation sets the fair market value of a US startup's common stock for stock options. What it is, when you need one, and how ESOP valuation works in India.
Revenue-based financing vs venture debt: which fits your startup
Revenue-based financing is repaid as a share of revenue; venture debt is a term loan alongside equity. How each works, what it costs, and when founders use them.
Liquidation preference explained, with worked examples
A liquidation preference decides who gets paid first when a startup is sold. 1x non-participating vs participating, worked through at two exit prices.
SAFE vs convertible note: how they work and which to use
SAFEs and convertible notes both turn into equity later. Valuation caps, discounts, interest and maturity compared, with how early rounds are structured in India.
Unit economics and the LTV:CAC ratio, with a calculator
Unit economics show whether each customer makes money. How to calculate customer lifetime value, acquisition cost, the LTV:CAC ratio and payback, with a free calculator.
Vesting, cliffs and ESOPs: how startup equity is earned
How vesting schedules and cliffs work for founders and employees, the standard four-year schedule, and the main rules for ESOPs in Indian startups.

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