Finance Processes

Fundraising is hard to get right, which is why companies of all sorts often turn to fundraising experts for help and advice regarding the fundraising process. There is a multitude of different professional figures that help companies raise capital, but for startups and growth companies, the two figures most often encountered are fundraising consultants and broker-dealers. Who is right for which endeavor?

For a business manager, choosing what to invest in should not be an exercise of instinct. With capital budgeting methods, managers can appraise various projects simultaneously, with the end result indicating which one will have the highest impact on company value.

In his first article on the effects of the new US corporate tax reform bill, Toptal Management Consultant Jacob Wright assessed one of the most important impacts of the reform: the changes to interest deductibility. In this follow-up article, he runs through some further thoughts related to the effects on capital expenditures, in addition to a more high-level assessment of what the optimal capital structure of the future will look like given these changes.

Though matchmaking is one of the oldest industries in existence, online matchmaking is now having a moment of its own. This article explores the business of dating: the market size of dating apps in the U.S., the industry’s biggest players, and how these products actually make money (if they even do).

Investment due diligence is a necessary process for both buyers and sellers to undertake to ensure the swift execution of their envisaged transaction. Although, with the stakes high, there are certain challenges that can arise throughout the process which, with careful planning and execution, can be mitigated.

The field of robotics has seen incredible strides forward in recent years. As a result of improvements in computer vision, dexterity and also overall economics, use of robots has increased in a variety of different fields. However, most of the growth in robotics so far has happened in industrial applications, and thus hidden from the view of the general public. But is this about to change?

In this article, Toptal Management Consultant Francesco Castellano focuses on the commercial robotics market. Thanks to recent breakthroughs in the fields of AI, mechatronics, sensors, and batteries, service and commercial robots are likely to see tremendous growth and adoption, likely heralding a new robotics revolution that could transform our daily lives in countless ways.

Conventional wisdom says you need a team to found a startup. But what if you prefer to do it alone or can’t find the right co-founders? Contrary to popular belief, there are many successful solo ventures. This guide shows you how to get started.

In the life of almost any growing enterprise, there comes a point in time when the existing systems and processes become insufficient. For most enterprises at this key inflection point, implementing enterprise resource planning (ERP) software, which integrates all areas of the business, can help to overcome this issue. This article provides enterprise leaders with the benefits and risks of ERP, as well as a detailed step-by-step implementation guide.

LTV:CAC analysis is one of the most important exercises startup founders must go through to evaluate their business’ prospects and raise external funding. It is, however, frequently misunderstood and misinterpreted.

In this article, Toptal Management Consultant Ryan Downie runs through a practical tutorial of how to perform LTV:CAC analysis correctly, and how it should be adapted and interpreted depending on the business model or sector in question.

Finding out your return on investment from a project can become a subjective process with the myriad of returns measures and formulas that exist. This overview provides a breakdown and explanation of how to calculate return on investment, looking at what type of return you need to measure and how to arrive at an answer. With further guidance on how to use returns data to guide objective decision making.

Biotech companies with little to no revenue can still be worth billions. Consider the most prominent 2017 biotech M&A deal when Gilead bought Kite Pharma for almost $12 billion. At the time of the deal, Kite had over $600 million in accumulated deficit, but it also had a pipeline of CAR-T cell therapies, which treat cancer. This article examines how to value such pipelines. It also focuses on the risk-adjusted NPV valuation methodology, portfolios of multiple drug candidates, and how value is impacted by the characteristics of the investor or acquirer.

Convertible notes have become an increasingly popular and common method for raising capital by startups, but how well do founders truly understand the implications of going down this route?

In this article, Toptal Management Consultant Jeffrey Briggs outlines the basics of convertible note structures, and runs through the pros and cons of using them to raise money for new entrepreneurial ventures.

Traditional approaches to valuing real estate can lean towards the qualitative side, relying more on intuition over sound rationale. Linear regression analysis, however, can offer a robust model for using past transactions in an area, to provide better guidance on property valuations.

Mergers and acquisitions are headline-grabbing events that are often the pinnacle of a CEO’s career. But they also often fail to generate value, as numerous studies over the years have shown.

With over 15 years of experience doing M&A deals, Toptal Management Consultant Javier Enrile shows that the main reason for disappointing results is simple: Most people think M&A is merely an exercise of agreeing on a price for the deal. What they fail to understand is that there is a science to doing M&A that often makes the difference between a deal being successful or not.

In this article, Enrile runs through three key tactics for ensuring your company can get the most value out of an M&A transaction.

Companies, like castles, need a line of defense to repel the invaders’ advances. Economic moats, taking a cue from their watery namesakes, are long-term and sustainable competitive advantages that protect others from seizing market share. But on the flipside, are they actually just lazy, passive strategies that shun innovation?

One of the most important and challenging aspects of forecasting is handling the uncertainty inherent in examining the future. Every CEO, CFO, board member, investor, or investment committee member brings their own experience and approach to financial projections and uncertainty, influenced by different incentives. Oftentimes, comparing actual outcomes against projections underscores the need to explicitly recognize uncertainty.

Monte Carlo simulations are an extremely effective tool for handling risks and probabilities, used for everything from constructing DCF valuations, valuing call options in M&A, and discussing risks with lenders to seeking financing and guiding the allocation of VC funding for startups. This article provides a step-by-step tutorial on using Monte Carlo simulations in practice.