David Teten

JANUARY 19, 2021

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. That said, nothing is cost-free. More complex cost of capital calculation. Inversely, if the company has slower than predicted growth, the effective cost of capital is automatically lowered. Venture Debt.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Repaid 12-36 months with ability to prepay at reduced cost. Unlike many RBI investors, a full 50% of our investment activity is in non-tech businesses. Capital need of up to $1.5M over next 12 months.

Revenue 60

Revenue Technical Review Software Review Equity 60

Up and Running

SEPTEMBER 26, 2016

Luckily for founders, the ways in which you can finance your startup are varied based on your business model, your preference, your goals, and timeline, and so on. The cost of venture debt capital is very, very low. See Also: 35 Great Ways to Fund A Small Business. Examples include SVB, Square 1, and so on.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Tim Keane

MARCH 9, 2011

The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  Business success is the ultimate goal. 2]   Aligning interests in structure: cost and risk.   Appropriate covenants. Maybe Small Business Administration guaranteed loan.

Finance 83

Finance Bootstrapping Startup Equity 83

Lightspeed Venture Partners

DECEMBER 10, 2012

Revenue is driven by children’s parties, which cost $600-$4,000 for a two hour party for 15 kids, which apparently is the market price for kids parties in LA. Even after paying the two founders $100,000 collectively in salary, the business still made a profit in the $125,000 to $150,000 range.

Covenant 162

Covenant Warrant Southern California Los Angeles 162