Early-stage companies often grant equity (or synthetic equity) awards to employees, consultants, and board members both for incentive purposes and as additional compensation when the company has limited resources. In addition, these companies are often limited to raising capital by using non-traditional securities such as convertible notes and preferred stock. As a result, early-stage companies tend to have complex capital structures that require specialized valuation approaches.
Valuing Early-Stage Companies and Equity-Based Compensation Units
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