Net-Net
What is Net-Net? Net-net is a term used for a company with a market capitalization that is less than the difference between the company’s current assets and total liabilities. The equation does not consider long-term assets, such as property, plant, and equipment (PP&E), and intangibles. Net-net investing is used with the underlying understanding...
Non-Renounceable Rights
What are Non-Renounceable Rights? Non-renounceable rights are issued by the company offering the shareholders the option to purchase additional shares of the company, usually at a price lower than the market price. The rights can neither be transferred to other investors nor sold in the market. Non-renounceable rights lapse if not exercised. Non-renounceable rights are...
Federal Deposit Insurance Corporation (FDIC)
Federal Deposit Insurance Corporation (FDIC) The Federal Deposit Insurance Corporation (FDIC) is a US government institution that provides deposit insurance against bank failure. The body was created during the Great Depression when the public had lost trust in the banking system. Prior to the FDIC’s formation, a third of US banks collapsed, leading to the...
How VC’s Look at Startups and Founders
A Quick Guide to Startup Funding Raising money from a Venture Capital (VC) firm is extremely challenging. The odds of receiving an equity check from Andreessen Horowitz is just 0.7% (see below), and the chances of your startup being successful after that are only 8%. Combined, that’s a 0.05% or 1 in 2000 success rate....
Money Laundering
What is Money Laundering? Money laundering is a process that criminals use in an attempt to hide the illegal source of their income. By passing money through complex transfers and transactions, or through a series of businesses, the money is “cleaned” of its illegitimate origin and made to appear as legitimate business profits. The Need...
