Kruze Consulting

Understanding Retained Earnings: A Startup's Financial Milestone 📊🚀 Retained earnings are more than just numbers on your balance sheet. They represent the cumulative profits your startup has earned over the years. But what happens if you have negative retained earnings? 🤔 For VC-backed startups, negative retained earnings can be offset by continuous equity raises. This is a common scenario for many of our clients at Kruze Consulting. 💡 Learn more about how retained earnings impact your startup's financial health and why it's a metric to be proud of when you turn profitable. #StartupFinance #VentureCapital

🚀 Founders, Understanding EBITDA is Crucial! 🚀 Ever wondered why investors are so obsessed with EBITDA? 🤔 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key metric that gives a clearer picture of your startup's operational performance. It strips away the effects of financing and accounting decisions, allowing investors to see a decent view of your business's profitability/burn. Here’s why it matters:  🔸 Operational Focus: EBITDA focuses on the core operations, making it easier to compare your startup with others in the industry.  🔸 Investor Appeal: Investors use EBITDA to assess the health and potential of your startup without the noise of non-operational factors.  🔸 Valuation Tool: It’s a critical component in valuation models, helping to determine your startup’s worth. EBITDA is not perfect - especially for tech startups... but it's something that VCs may ask you about during a fundraise. For a comprehensive guide on EBITDA and how it impacts your startup, check out the link in the first comment below. Let’s make informed decisions that drive growth and attract investment! 💼🌟

VC Fund Reserves: What Founders Need to Know Now 💰🔍 As many VC funds are getting long in the tooth, having been raised years ago, understanding fund mechanics is more crucial than ever for startups. Key takeaways on VC fund reserves: +Typically 30-40% of a fund is reserved for follow-on investments +Reserve allocation can make or break a startup's future funding +Founders must approach reserve requests strategically Don't miss this insider's perspective on VC decision-making!

Is Your Startup Default Alive or Default Dead? 💡💼 Paul Graham, the founder of Y Combinator, asks a crucial question to every startup founder: "Is your startup default alive or default dead?" 🤔 Being "default alive" means your startup is on the path to profitability without needing more outside investment. On the other hand, "default dead" means you'll need another check to keep going. 🚀💸 Understanding this concept is vital for your startup's survival and growth. Learn how to cut your burn rate strategically and maintain a healthy, growing company. 🌱 Read more about this powerful concept and how it can impact your startup's future. Link in the first comment! 👇 #StartupFinance #VentureCapital

🔍 What is a POA notification and why should startup founders care? 🔍 When your startup outsources payroll or HR functions, you’ll need to provide a POA (power of attorney) authorization. This allows your payroll provider or accounting firm to handle important tasks like unemployment benefit claims or contacting the IRS on your behalf. 🏢💼 If you receive a POA notification, it’s just a confirmation that the taxing authority has received your authorization. No action needed! ✅ Understanding these notifications can save you time and stress. Learn more about POA notifications and how they impact your startup. #StartupFinance #TaxTips

🚀 Master the Art of Pitching with Guy Kawasaki's Pitch Deck! 🚀 At Kruze Consulting, we've seen startups raise over $15 billion in VC funding, and one tool that stands out is the Guy Kawasaki Pitch Deck template. 📊✨ The 10/20/30 rule is an awesome framework for a compelling pitch: ✅ 10 slides ✅ 20 minutes ✅ 30-point font This framework forces you to distill your ideas and make a compelling, concise pitch. I love how it pushed founders to tell a story - efficiently. Watch my video or read the guide (link in comments below) and see why this template is a must-have for early-stage startups. I’m also including a link to where you can get the deck off of Guy Kawasaki's site.