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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem.

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2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

I obviously don’t have a crystal ball so the economy could fare better than my gut, but here’s why I’m cautious for some time in 2010 or early 2011: Why is the future still so unpredictable? This is tied to having consumers who feel confident enough to spend.

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Pricing Customer Acquisition Sunk Costs and More - Ten Recent Great Startup Posts

SoCal CTO

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs , February 2, 2010 Looks at the critical equation around customer acquisition cost vs. customer lifetime value similar to what I discussed in Startup Metrics but in more depth. Great stuff. This post looks at the implementation details of HTML 5 video. Good stuff from Jason.

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Top Hat Raises $22.5M Series C in a Tough Vertical: What Can We Learn from their Success

Version One Ventures

As such, Top Hat can provide key lessons for early-stage companies: 1. Back in 2010, the team tried approaching university administrators to get them to adopt their platform. They focused on revenue early on. They took an innovative approach to distribution.

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This Week in VC with Dana Settle of Greycroft Partners

Both Sides of the Table

Greycroft is an early-stage VC. Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Competitors: Knewton.

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Times Square Strategy Session – Web Startups and Customer Development

Steve Blank

In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers? And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” They’re putting money into web services/business – most without early revenue. Great quote.

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Revenue = Resources

Eric Friedman

In any early stage environment there are typically limited development cycles, budgets, and overall resources to get things done. In this constant struggle, I learned (definitely the hard way) that Revenue = Resources. This was in 2010 and certainly early in the life cycle of network growth and sales.

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