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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. VII: Flexible VC, a New Model for Companies Targeting Profitability.

Equity 78
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# And this is happening in mezzanine (pre-IPO) deals as well. Those with strong business models suddenly stand out when the tide goes out. But everything has intrinsic value.

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Think Your Start-up Is Venture Worthy? Think Again.

techcrunch.com

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Especially since even Youtube is still struggling to try find a viable business model. Pepperdine Business Press Room – Graziadio School PR [.] dasein Yeah, I agree. Share and [.]

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Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

If you don’t want to read that post, the summary is: Open source computing drove computing costs down 90%, which spurred innovation in technology. As some of the last generation of startups have gotten bigger many VCs have also chased later-stage investments that were traditionally dominated by growth equity or mezzanine funds.