article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

— all great things when you are executing and scaling a known business model. Because the new CEO had built a team capable of and comfortable with executing an existing business model, the company would fail or get acquired. Founders can now outvote the preferred stock holders (the investors).

Founder 245
article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. ” On one hand they’re right.

Cram Down 404
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

8 Parameters To Bracket New Venture Funding Requests

Startup Professionals Musings

On the other hand, venture capital organizations typically look for needs that exceed $2 million. What business milestones have you met? If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000.

article thumbnail

8 Key Business Elements Set Startup Investor Interest

Startup Professionals Musings

On the other hand, venture capital organizations typically look for needs that exceed $2 million. What business milestones have you met? If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000.

Startup 337
article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Equity investors. Debt investors.

Startup 150
article thumbnail

Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem. Alternative Capital Summit. Issues with the classic VC model.

Revenue 60
article thumbnail

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

As these late-stage private companies digest these large fund raises, they are pushing profitability further and further into the future, as well as the proof that their business model actually works. If you want to know if the business model truly hunts, you must pay careful attention. Consider the case of Fab.com.

IPO 40