Company Structure & Startup Overview

1. Share Types

• Equity Shares: For founders and directors; offer ownership, voting rights, and dividends.
• Preference Shares: For investors; fixed returns and priority in liquidation.
• ESOPs: Stock options for employees; typically subject to vesting.
• Advisory Shares: Non-cash equity for advisors; usually 0.1 - 1% and vested over time.

2. Key Roles & Responsibilities

• Director: Strategic oversight, legal and regulatory compliance.
• CEO/MD: Executes vision, manages business, and investor relations.
• CFO: Finance, budgeting, accounting, and fundraising.
• CTO: Tech innovation and product development.
• Employees: Operational execution and goal alignment.
• Advisors: Market insights and networking; compensated via shares.

3. Investment

• Seed/Angel: Early-stage funding by founders, friends/family, or angels.
• Venture Capital: Series A/B/etc. to scale and expand operations.
• Equity Dilution: Existing ownership reduces with each new funding round.

4. Growth Targets

• Year 1: MVP launch and first user acquisition.
• Year 2: Revenue growth and market expansion.
• Year 3: Team scaling and next funding round.
• Year 4+: Profitability, global expansion, IPO/acquisition readiness.

Digital Hospital Startup Valuation

• Key Drivers: Tech (telemedicine, EMR, AI), traction, revenue model, market size, compliance.
• Valuation Methods:
  • Berkus, Scorecard, Comparable startups (early stage)
  • VC Method, 5 - 10 x EBITDA multiples (growth stage)
• Example: $5M revenue x 20% margin = $1M profit : 10 x = $10M future valuation : $3 - 5M present value

Proactive Communication by Director

• With Shareholders: Regular updates, transparency, quarterly briefings, feedback loops.
• With Teams: Team check-ins, tools (Slack, Teams), clear vision, recognize success.

Key Business & Finance Terms

1. GST (Goods and Services Tax): Indirect tax on supply of goods/services.
2. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Profit before interest, tax, depreciation, and amortization.
3. GDP (Gross Domestic Product): Total value of goods/services in a country.
4. Startup: New, scalable, innovation-driven business.
5. Net Amount: Final amount after deductions.
6. Gross Amount: Total before deductions.
7. Revenue: Total income before expenses.
8. Profit: Revenue minus expenses.
9. Turnover: Total sales/revenue.
10. Equity: Ownership in a company.
11. Assets: Valuable resources owned.
12. Liabilities: Company debts and obligations.
13. Investment: Allocation of money for returns.
14. ROI (Return on Investment): Profit from an investment.
15. Working Capital: Current assets minus liabilities.
16. Break-even Point: Revenue = Expenses.
17. Depreciation: Asset value decline over time.
18. Amortization: Gradual debt/intangible reduction.
19. CapEx (Capital Expenditure): Capital expenses for assets.
20. OpEx (Operating Expenses): Operating expenses for business.