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Category: Equity education

internal rate of return (IRR)||||

How VC funds calculate their internal rate of return (IRR)

IRR, or internal rate of return, helps investors estimate their profitability. Learn more and download our free IRR calculator.

What is a 409A valuation?

Learn everything you need to know about section 409A of the internal revenue code. From what is a 409A valuation to 409A methodologies and process.

Common stock vs. preferred stock

Common stock and preferred stock both offer different benefits to shareholders. In general, common stock is reserved for employees, while preferred stock is given to investors.

What’s new with ASC 820 guidance

Stephanie Wittrock, an ASC 820 expert, hosts a panel explaining what ASC 820 is and what’s changing with the new guidance. Carta offers both self and full-service ASC 820 services to ensure your fund is ready for audit.

what is a cap table||||||||

What is a cap table?

A capitalization table (or “cap table”) is a list of all the securities your company has issued and who owns them. Learn why you need a cap table, what one looks like, how to make one, and more.

What is fair market value (FMV)?

Unlike public companies where value is set by the market, private companies use independent appraisers to assess their value. Fair market value is the current value of a private company’s common stock and it determines the strike price.

Why do private companies run liquidity events?

A tender offer is a structured, company-sponsored liquidity event. Tender offers can be company share-buybacks or third-party investor purchases.

tear sheet example

What is a tear sheet? (Free tear sheet example)

A tear sheet helps LPs understand how their investment is performing. Download our tear sheet example to get started today.

What to do before you raise a round

Founders and CFOs: here’s what you need to do before raising your next round and how Carta can help.