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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.

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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. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem. However, according to Bryce Roberts, co-founder of Indie.VC, only 0.6%

Revenue 60
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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

Another called Parker Harris, the co-founder and CTO. My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog. The Original Post (after the jump): Venture Capital, By Mark Suster (December 2nd, 2006).

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New San Diego VC Firm Emerges as ‘The Moneyball of Venture Capital’ | Xconomy

www.xconomy.com

Sakti3 Founder Sastry to Step Down From U-M. VP of Strategic and Emerging Business Development, Microsoft. Co-Founder and CEO, Wetpaint. Founder, DEKA Research and Development Corporation. New San Diego VC Firm Emerges as ‘The Moneyball of Venture Capital’. Subscribe for Free. Xconomy San Diego.

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Who are the Major Revenue-Based Investing VCs?

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

Revenue 60
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The David S. Rose Reading List for High-Growth Startups

Up and Running

You’ll learn more about what destroys startups, how to use the Customer Development method to succeed, how to use the Business Model Canvas, how to identify and keep your customers, and how to drive profits. Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. By Bo Peabody.

Startup 80
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Make No Little Plans – Defining the Scalable Startup

Steve Blank

A lot of entrepreneurs think that their startup is the next big thing when in reality they’re just building a small business. A first order filter is whether the founders are aiming for a scalable startup. Staring at us in the board meeting were three term-sheets from brand name VC’s and an unexpected buy-out offer from Google.