Inverse problems represent one of the most fascinating and challenging concepts in quantitative finance. While forward problems help us...

Pro-rata rights give investors the option to maintain their ownership percentage in a company by participating in future funding rounds . These rights allow investors to prevent dilution of their equity stake by purchasing additional shares proportional to their current ownership when the company raises new capital. Why Pro-rata Rights Matter Protection Against Dilution : Without pro-rata rights, an investor's ownership percentage naturally decreases as new shares are iss

Mini tender offers are a lesser-known but important concept in the world of investing . This article will explain what mini tender offers are, how they work, their potential benefits and risks , and what investors should consider when encountering them. What is a Mini Tender Offer? A mini tender offer is a bid to purchase a company's shares directly from shareholders , but for less than 5% of the company's outstanding stock. This 5% threshold is crucial, as it allows the ent

In the world of tech startups and digital platforms, investors are constantly seeking reliable indicators of a company's potential for growth and long-term success. One such metric that has gained significant attention in recent years is the Activation Rate. This article delves into what Activation Rate is, why it matters, and how investors can use it to make informed decisions. What is Activation Rate? Activation Rate, also known as the "Aha Moment" rate, is a metric

Liquidation overhang is a critical concept in venture capital and startup investing that can significantly impact a company's ability to raise capital and its overall valuation . This article will explore what liquidation overhang is, how it occurs, its implications for investors and startups , and strategies to mitigate its effects. What is Liquidation Overhang ? Liquidation overhang , also known as liquidation preference overhang , occurs when the total liquidat

Data leakage is a critical issue in artificial intelligence that can significantly impact the performance and reliability of AI models....

In private equity and venture capital , understanding performance metrics is crucial for making informed investment decisions. Two of the most important metrics are Distributed to Paid-In (DPI) and Internal Rate of Return (IRR). This article is about these metrics, explaining what they are, how they're calculated, and why they matter to investors . Distributed to Paid-In (DPI) What is DPI? DPI, or Distributed to Paid-In, is a cash-on-cash return multiple that measures the am