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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

They have open-sourced their investment structure , now on version 3.0, By comparison, traditional VC has a bankruptcy rate of 30-40%. Their 2016 Fund was the first and largest fund so far using this structure, with $25M AUM. Purpose Ventures’ deal structures are bespoke to each company.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

BTW: putting your staff into a separate corporate entity and then forcing bankruptcy is a time honored way of getting rid of undesirable employees without having to pay their severance packages.). Not that they were trying to take advantage of me necessarily, but it happened because of the deal structure. Recent Posts.