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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

Jonathan sometimes refers to their investments as “micro-mezzanine” because “mezz is typically structured as a contractual periodic payment, with some equity-like upside, but subordinate to other debt… so most lenders look at it like equity. . 20% initial ownership. Purpose Ventures’ deal structures are bespoke to each company.

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Think Your Start-up Is Venture Worthy? Think Again.

techcrunch.com

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. The only option at the moment for smaller ideas is to go seed / angel funding, or try to bootstrap it. The cost of money is steep, and only works in certain verticals, of which software is NOT one.