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Are You Selling Your Company? Be Careful with Financial Buyers!

Scott Edward Walker

In other words, the business model for financial buyers is to buy a business and then sell it (or take it public) within a relatively short period of time. It matters because, unless you understand the motivation of a prospective buyer, it will be very difficult to make informed decisions with respect to critical deal issues.

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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

Questionable business model. Negotiating a different deal structure could have prevented the price from dropping. The current market cap is only $1.8 billion and could fall further. A few attributes that led to this dramatic decline: - Intense competition. - Low barrier to entry. Unprofitable. Rapidly growing market.

IPO 162
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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

With a portfolio that includes food, tech, and services, the fund is industry-agnostic and focused on the overlooked and underrepresented with high-margin business models. We identify great innovative companies with solid business models and help them determine the right growth path for their businesses.

Equity 78
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Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

Ask any of us who've experienced significant down rounds based on some or all of these things, and one begins to understand the cautionary nature of deal structures.  the business, it will always be worth more to the entrepreneur as well as future investors, if any.  .  This is a confluence of bad events.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

You validated our business model and added huge value to our efforts. However, as we know from the cable industry, subscription businesses can be very profitable over time. For a direct, enterprise sales business model, these thresholds are likely to be around $80,000-100,000 CMRR (approx. $1-1.2M Michael Kassing.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

While it’s flattering that someone might think I’m capable of immediately grasping all the complexities of the business instantly, it’s a bit unrealistic. If I can copy your business by just looking around, then your company isn’t going anywhere anyway. You don’t have a defensible business model.

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Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

Although I knew I would be working in (not on) the business to some extent, the work turned out to be more than I anticipated, at least initially. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.