David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 31, 2014

In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products. The first will be commodity businesses that are valued for their ability to execute their current business model.

Private Equity 328

Private Equity Metrics China Intellectual Property 328

Steve Blank

MARCH 4, 2014

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335

IRR Startup Business Model Agile 335

David Teten

NOVEMBER 23, 2020

In an article you wrote for Techcrunch in 2019 about Revenue Based Investing you mentioned that “ traditional equity VC is biased structurally against some women and underrepresented founders”. Traditional equity VCs are looking for high-risk, high-reward, “swing for the fences” models. Why is that? I listed some examples above.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   As a starting point, these become market comparable discussions based on other similar transactions within a recent timeframe and similar business.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? But should they? Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Professor VC

MARCH 10, 2009

Kennet has a white paper on that summarizes why bootstrapped businesses are the best. His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. They have a standard presentation on bootstrapping, which they present around the country.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28