Silicon Valley Bank’s Streamlined Closing Form is an exciting new loan feature for startup founders who are going to borrow money to augment their equity capital. SVB is making venture debt documentation a lot easier. What this means is you have an option in the term sheet that you sign with SVB so you can elect to do their Streamlined Form. Once you select that option, you can’t make any changes to the forms, but guess what? It’s free. There’s no documentation fees. Venture debt loan documentation is expensive That’s a big deal because documenting a venture debt loan, even a smaller loan, c ..read more

My team gets asked this question several times a year - is there a way for a VC-backed founder who is either working from home, or who lists their startup’s address as their home to have their startup pay their rent/mortgage and thus give the founder tax free income? No. Guess what founders - the IRS isn’t stupid. They’ve seen this game before. And while your personal CPA may try to tell you this is OK, they are used to dealing with small businesses that operate as an LLC or a pass-through entity. But your VC-backed startup is a C-Corp, and executive compensation at C-Corps should be run thro ..read more

Over the last six months, inflation has decreased a significant amount (as of the end of February 2024). This is a big change, compared to the last few years, so it is important for you to understand how your startup should manage the venture dollars that you’ve raised as interest rates potentially continue to go down at a faster rate. Inflation Is Cooling Down Right now, we most certainly wouldn’t consider inflation to be low. However, it is getting under control, compared to the heights of inflation in 2022 and 2023 when inflation was going crazy. Now interest rates are beginning to fall a ..read more

Table of contents Options to get more FDIC insurance Options to access government-backed money market funds How to get more than $250,000 FDIC insurance Companies that offer more than $250,000 in FDIC insurance Notes on FDIC insurance FDIC and startup's cash video FDIC insurance vs SIPC insurance Will your startup ever need FDIC insurance? Why are VC funds adding treasury clauses to term sheets?  Options to get more FDIC insurance Options to access government-backed money market funds and Treasuries How to get more than $250,000 FDIC insurance Companies that offer more than ..read more

Kruze Consulting clients are twice as likely to be acquired as the average startup. I say that with a ton of pride, a little bit of awe, and a profound sense of responsibility. Our commitment to not just meet, but exceed, the expectations of those we serve is what sets us apart. It’s not just about numbers for us; it’s about the people and dreams behind each startup (although we do really care about the numbers!). I’ve always known that the team at Kruze cared more about our clients’ success—but to actually see data that supports the quality of the work that we do is truly heartwarming. Talk ..read more

A lot of startups are finding that, with interest rates going up, they have the opportunity to work with a cash management specialist who can then get them into very safe Treasury and corporate bonds, even packages or bundles of bonds.  These types of bonds are different to simply putting your cash into savings or a money market account because it takes a little more work, but you also get a higher yield. A cash management team can do a lot of the extra work for you, and more startups are finding themselves holding Treasury securities or high quality corporate bonds such as St ..read more

For venture capital-backed startups, navigating the complex landscape of investor rights is crucial, particularly when larger investors are demanding that they get special rights - called “major investor rights.” These rights not only protect the investors’ interests but also shape the relationship between startups and their financial backers. We strongly recommend that founders work with experienced law firms when they are raising VC rounds. And as CPAs serving startups, we are often called on to produce reports that major investors ask for, and we can attest that the number of investors you ..read more

Today, we’re exploring the concept of secondary stock transactions. Despite a general slowdown in VC activity, we are still seeing some founders successfully sell shares in secondary transactions - particularly among AI companies experiencing rapid sequential funding rounds. Secondary transactions involve the sale of shares from existing shareholders, such as founders or early investors, to new or existing investors, without injecting new capital into the company itself. Definition: Secondary Stock Transactions (or Secondaries) A secondary stock transaction occurs when an investor buys share ..read more

Table of contents First, what to look for in a credit card for your startup What is a Brex credit card? What is a Ramp credit card? Comparing Brex and Ramp’s cards A Quick Note on Brex Leaving the SMB Market Reviews of Brex and Ramp’s cards Brex vs Ramp vs Stripe Do we recommend Brex or Ramp? Brex vs Ramp in Review Biggest Perk - AWS CRedits - Brex vs Ramp Which has higher credit limits - Brex or Ramp? Deep dive into Ramp's bill pay financing - Interesting for SMBs, not so Much startups A side note on travel Does Brex charge a fee? Does Ramp Charge a Fee? Our startup clients co ..read more

A question we get frequently from startup founders is should they cap commissions for their sales team? The reason they ask this question is because they get the financials we prepare at Kruze, and they are startled that the VP of Sales or a top salesperson is making more money than anyone else in the company. And that can be a shock when the CEO or COO finds out that another employee is making more than they are. However, capping sales commissions can seriously impact your company’s growth. Commission caps can backfire While capping commissions may seem cost-effective at first glance, it co ..read more