Understanding Newton’s First Law of Start-Up Investing

Posted on September 8, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

***

Understanding Newton’s First Law of Startup Investing

***

COMMENTS APPRECIATED

EDUCATION: Books

Like, Refer and Subscribe

***

***

Filed under: "Ask-an-Advisor", Accounting, Career Development, Experts Invited, Funding Basics, Investing, Portfolio Management | Tagged: , , , , , , , , , , , | Leave a comment »

PRIVATE EQUITY COMPENSATION: Carried Interest [Pros and Cons]

Posted on April 17, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

DEFINITION

By Staff Reporters

SPONSORS: http://www.MarcinkoAssociates.com

***

***

Carried interest accounts for the bulk of private equity fund managers’ compensation. It is calculated as a share of fund profits, historically 20% above a threshold rate of return for limited partners.

In contrast with most other forms of employment compensation and business income, carried interest earned from fund investments held for at least three years is taxed as a long-term capital gain at a rate below the top marginal income tax rate.

Critics of the provision contend it taxes highly compensated private equity managers at a lower rate than comparably paid providers of labor or business services.

Defenders of carried interest argue taxing it as income would be unfair because it represents capital gains even if they’re not derived from recipients’ capital.

COMMENTS APPRECIATED

Refer and Subscribe

***

***

Filed under: "Ask-an-Advisor", Accounting, Investing, Marcinko Associates, Taxation, Touring with Marcinko | Tagged: , , , , , , , , , , | Leave a comment »

SEED FUNDING: Money and Capital

Posted on March 5, 2025 by Dr. David Edward Marcinko MBA MEd CMP™

DEFINITIONS

By Staff Reporters

SPONSOR: http://www.MarcinkoAssociates.com

***

***

Seed money, also known as seed funding or seed capital, is a form of securities offering in which an investor puts capital in a startup company in exchange for an equity stake or convertible note stake in the company.

The term seed suggests that this is a very early investment, meant to support the business until it can generate cash of its own, or until it is ready for further investments. Seed money options include friends and family funding, seed venture capital funds, angel funding, and crowdfunding.

Types of Seed funding

  • Friends and family funding: This type of seed funding involves raising money from friends and family members.
  • Angel investing: As mentioned above, angel investors are wealthy individuals who provide seed funding in exchange for equity ownership.
  • Seed accelerators: These are programs that provide startups with seed funding, mentorship, and resources to help them grow their businesses.
  • Crowdfunding: This type of funding allows startups to raise money from a large number of people, typically through an online platform.
  • Incubators: These are organizations that provide startups with seed funding, office space, and resources to help them grow their businesses.
  • Government grants: Some government agencies provide seed funding for startups working on specific projects or in specific industries.
  • Corporate ventures: Some big companies set up venture arms to provide seed funding to startups in their industry or complementary field.
  • Micro-Venture Capital: A type of venture capital that provides seed funding to new startups and early-stage companies with a small amount of money.

COMMENTS APPRECIATED

Refer and Subscribe

***

***

Filed under: "Ask-an-Advisor", Alternative Investments, Experts Invited, Funding Basics, Glossary Terms, Investing, Touring with Marcinko | Tagged: , , , , , , , , , , , , , | Leave a comment »