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

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . of founders raise VC; the other 99.4%

Revenue 60
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

a loan) that is later converted to equity at the time of the next financing. If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. It starts as a debt instrument (e.g.

Startup 290
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Thoughts on Convertible Notes

K9 Ventures

I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. Since the financing would likely happen in short order, there was no need to have a valuation cap in the note.

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This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

Often times when companies raise “bridgefinancing (this is money from internal investors. But when the finally convert the debt to equity the round gets filed with the SEC and thus journalists often pick up on it. . WordStream – Provides software and services that help businesses manage SEM and SEO campaigns.

Stealth 285
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The Basics of Small Business Loans [WEBINAR]

Up and Running

Angels and equity: there are businesses and angel funds out there in various parts of the U.S. They’ll look at the management of the business and who the people are that are applying for the loan, what their experience is. They’ll look and see, is there any additional collateral that can be used to finance this particular loan?

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The Option Pool Shuffle

venturehacks.com

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.