article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

— all great things when you are executing and scaling a known business model. Because the new CEO had built a team capable of and comfortable with executing an existing business model, the company would fail or get acquired. Founders can now outvote the preferred stock holders (the investors). Board Control.

Founder 269
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Yes, non-voting common shares (if converted).

Insiders

Sign Up for our Newsletter

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

article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. ” On one hand they’re right.

Cram Down 413
article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Equity investors. Debt investors.

Startup 150
article thumbnail

How to Fund Your Startup Without Losing Control

Up and Running

For a business that anticipates needing, for example, $500,000 in startup capital, that means that best-case scenario Klemm can expect to give up half of his business’s common stock (and an even larger percentage of control of the business once the deal’s fine print provisions are considered).

article thumbnail

Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Why Arizona Bay started taking stock from its customers instead of cash. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Venture Capital Firms. Over the past year or so, work-for-equity arrangements have become an integral part of Arizona Bays business model.

Arizona 40
article thumbnail

The 5 Key Stages of Equity Funding

Growthink Blog

If it's not your plan to get venture capital down the road, then you'll probably stop in Stage 2-receiving enough funding to boost your marketing, sales, and infrastructure to grow organically from there to the point where you are satisfied or ready to sell. Each round may raise between $5 million and $20 million or more.

Equity 88