article thumbnail

7 Advantages That Local Small Business Owners Enjoy

Startup Professionals Musings

It seems that most of you entrepreneurs I meet in my role as business advisor are convinced that starting a new business requires equity investors, exponential growth, and a plan to go public via IPO. Personal income is related to operations versus equity. With major investors, your equity and return is diluted and delayed.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020.

Equity 78
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on. Photo by nosheep. Discuss.

Dilution 114
article thumbnail

State of VC 2.0

View from Seed

For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 319
article thumbnail

Strategy Roundtable: Open Opportunities in Cloud Computing and Rural BPO

ReadWriteStart

Whether it is credit or equity, funding is very, very tight. You can get cash without diluting your ownership in the company. Because customer financing equals revenue, not equity. I gave Gio some advice on funding, which I will repeat here for all of you. This is important, so please listen up. Photo by takatuka.

Cloud 115
article thumbnail

State of VC 2.0

View from Seed

For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 295
article thumbnail

The SME Instrument: How Innovative Startups Can Receive EU Funding?

Transformify

To boost innovation and SME sector growth, the EU Commission has launched the SME Instrument of the Horizon 2020 program – the largest non-dilutive fund in the world. EUR 3 billion are available to fund a maximum of 7,500 startups by 2020! Why non-dilutive? It is a grant, not an equity funding.