Venture Capital is a form of private equity focused on early-stage and emerging companies, but is often used as a catch all phrase for the investment in startup companies. Often confused with Angel Investment, Venture Capital is a more serious and formal arrangement, with proper financial controls and reporting being part of the arrangement.
Venture Capital backed firms, or companies seeking venture funding, need to have real corporate financials set up, even if they are pre-revenue stage companies. Investment groups, like VC firms, need to report on their holdings to their investors, which results in small companies needing to comply with GAAP because of their financial structure.
Bette graduated from the Massachusetts Institute of Technology (MIT) in 2002, and did her first startup accounting job in 2001. As a result of this track record, we work with startup companies in the Boston, New York, San Francisco, and Miami markets. With our proximity to Miami, one of the most international business cities, one of our specialties in the intricacies of both stock options and foreign ownership, complex areas of the tax code that require careful navigation.
One of our Advisors, Peter Hubshman, specializes in areas of finance and modeling relevant to startups, and has spend a few decades helping firms raise capital. Startup companies that think that they may look to raise venture funds or sell to a private equity firm should consider implementing proper financials from the beginning, as the cost differential is minimal and the time savings when you are ready to raise capital can be substantial.