Fractional CFO
A Fractional CFO (Chief Financial Officer) is a senior-level financial expert who works with a business on a part-time or contract basis rather than being a full-time employee. Fractional CFOs provide high-level financial guidance, strategy, and management, typically for small to medium-sized businesses (SMBs) that cannot afford a full-time CFO. They help businesses improve financial […]
Cap Table (Capitalization Table)
A Cap Table, or Capitalization Table, is a detailed record of the equity ownership in a company, showing all the securities (such as stocks, options, and warrants) outstanding, their respective owners, and the percentage of ownership. The cap table is a critical document for startups, investors, and stakeholders, as it outlines the ownership structure and […]
ARR (Annual Recurring Revenue)
Annual Recurring Revenue (ARR) is a key metric for subscription-based businesses, measuring the predictable and recurring revenue generated over a 12-month period. ARR excludes one-time payments and focuses on stable, recurring revenue streams, often used in businesses such as SaaS (Software as a Service) or subscription-based services. How It Works ARR is calculated by multiplying […]
Runway
Runway refers to the amount of time a business can continue operating before it runs out of money, based on its current burn rate. It’s a critical metric for startups, especially those that are not yet profitable. Runway is typically measured in months and indicates how long a company can sustain its operations before it […]
Burn Rate
Burn Rate refers to the rate at which a company spends its available funds, typically measured on a monthly basis. It’s an important metric for startups and businesses that are not yet profitable, as it helps to determine how long they can continue operating before needing additional funding. Burn rate is often expressed in terms […]