Challenges for startups
Limited Resources: Startups frequently face limitations in resources especially with regards to time, finances, and staff, creating challenges when it comes to planning potential transactions and financial analyses.
Lack of experience: Startups may lack experience in structuring financing rounds and negotiating with investors, which can make it challenging to determine the best possible structure in a potential transaction.
Limited Historical Data: As a young company, startups typically have a limited financial track record and constrained revenue data for analyses. This leads to uncertainty in predicting future financial outcomes and what data to provide to potential investors.
Three advantages