startups Archives - trica equity blog

Captable

Equity Term Sheet: What Is It and How to Prepare One?

If you are a budding entrepreneur, you will know that finding investors who believe in your business idea, have the financial ability, and willingness to invest in your business is…

Captable

All You Need to Know About Liquidation Preference

If you are an entrepreneur or in the top management of a growing start-up, your primary focus is probably on ensuring smooth operations, creating business opportunities, recruiting the right talent,…

ESOP

What Are Special Purpose Vehicles and How Do They Work?

While companies departmentalize their functions or divisions, a distinct and separate entity wholly dedicated to a specific project or purpose can create the necessary space to ensure its success and…

ESOP

The Impact of Alternative Minimum Tax on Startup Equity

Equity is the foundation on which a company’s core financials rest. The value of equity is indicative of the value of the firm. Startups need to pay extra attention to…

ESOP

4 Reasons Why Your Startup Needs an Employee Equity Management Software

A startup involves so many activities that are not standardized and are therefore more time and resource-consuming. The opportunity cost of these is quite high since the time and resources…

Captable

What are Compulsory Convertible Debentures or CCD?

CCD or Compulsory Convertible Debenture is a hybrid security that is neither purely debt nor equity. These debt instruments have to mandatorily get converted. Due to this mandatory conversion to…

Complete Legal Overview on Sweat Equity Shares

With the government notification that came out on Tuesday night, the issue of ESOPs and “Sweat Equity” is back in focus. Financial news portal – Finshots has a good summary…

How Does Sweat Equity Work?

“Sweat Equity” shares mean equity shares issued by a company to its employees or directors at a discount or for consideration other than cash. In other words, it refers to…

What is the difference between Sweat Equity Shares & ESOPs?

“Sweat Equity” shares mean equity shares issued by a company to its employees or directors at a discount or for consideration other than cash. In other words, it refers to…

ESOP for Founders

ESOP Accounting & Bookkeeping

There is a pandora of misconceptions around ESOP accounting treatment, the requirement of valuation reports and disclosure, etc., across the startup ecosystem. The ESOP component is offered over and above…