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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. Typical business stage. An already proven business model and its already valuable assets. Typical business model. Typically promissory note or non-voting common stock, with covenants.

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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. Unlike many RBI investors, a full 50% of our investment activity is in non-tech businesses. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC.

Revenue 60
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Venture Debt 101

Up and Running

For startups and high-growth businesses, as you scale and encounter new milestones and obstacles, you will be faced with the question of how to finance and plan for that growth. 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.

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How should I finance my new venture? - Startups and angels: Along.

Tim Keane

.  If plenty of cash flow regardless of plan for sale/retention of business: Senior bank debt based on cash flow coverage and new assets.    Appropriate covenants. Maybe Small Business Administration guaranteed loan.   If not enough cash flow but with the desire to retain the business --. . 

Finance 83
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Shark Tank 2012 Holiday Episode Breakdown

Lightspeed Venture Partners

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. To build the Coop the two founders took a $125,000 small business loan. If a business throwing off $125,00-$150,000 in annual profit can’t get a $150,000 loan, there is something wrong.

Covenant 162