Startups are everywhere. The staggering success of companies like Facebook, Google and Uber over the last decade have mystified and glorified the idea of starting, joining or investing in a brand new company. Whether as a way to achieve greater job satisfaction, to get rich quick or to change the world, more and more people today are becoming involved with startups.
Financially, how does it all actually work? Where does the money for a startup come from when it’s often not profitable for several years, unlike other businesses? How is the money made when a startup is successful? Who makes the money? How is the pie sliced up? How does that work for regular employees that join later?
This book teaches you the conceptual basics of how startups and those involved with them (founders, investors and employees) make their money. We will not go into technical jargon or overly complicated analysis – this is as high level as it gets!
After reading this short book, you will know the basic, bare bones concepts of: -How entrepreneurs make money from founding startups -How investors make money by investing in startups -What a Venture Capital fund is and how it works -How employees make money (or often don’t make money) working in startups
People that may be interested in this book: -People interested in launching startups but with little to no financial background -People interested in investing personal money into friends’ startups -Employees joining startups – techies, salespeople, etc. – without a formal business education (are you being granted options? What does that mean? How does it work?)
To make the most out of this book, you should understand the basics of business finance, such as how the value of a company is determined and what “equity” is. For a quick and dirty (30-45 minute) overview of those concepts, we recommend reading the preceding book in this series, “Really Basic Guide: Business Finance,” by Nicholas Spitzman, also available as a Kindle Short on Amazon.