1 KiB
1 KiB
Section 8 | Lesson 44 - Debt/Bonds, Interest Rates/Yield Curves, Equity
Notes
late stage VC & VD round
- year 5-6
- best VC: Meritech
- best VD: Silicon Valley Bank
Finance & Accounting differences
accounting
- accrued revenue and expenses
finance
- cash revenue and expenses
- cost of capital (cost of getting money)
- cost of equity
Debt
- nominal interest rate = interest rate of a bank loan
- real interest rate: rate that government loans banks
- liquidity risk: how fast can one turn all his assets to cash
- cost of debt = liquidity risk + inflation risk + defautl risk + maturity + real interet rate
- risk free rate = real rate of interest + inflation premium