Cap Table Government Operations Revenue 
David Teten
AUGUST 19, 2019
So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.
This is going to be BIG.
JANUARY 18, 2024
They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. Governance Moreso than a lot of actual VCs, a lot of high-net-worth folks tend to ask for board representation—even in the super early stages of a company where boards tend to be a little less formal. Can they lose this money?
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David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.
Austin Startup
AUGUST 20, 2017
Your Cap Table is something that deserves constant care and attention. Messy cap tables can come back to haunt you when you do a financing or sell the company. Board and Governance issues arise from day one in most startups. I am very surprised when that cool thing actually meets a customer need or drives revenue.
David Teten
OCTOBER 1, 2015
portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures. I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. Rock Health).
www.paulgraham.com
APRIL 28, 2010
There never has to be atime when you have no revenues. Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. And we think its better if startups operate out of their ownpremises, however crappy, than the offices of their investors.
Hunter Walker
JULY 18, 2022
But you need to remain great and investable while also managing your costs, extending your runway, tightening your operating plan, and so on. Your runway is impacted by the absence of projected revenue. The former largely means the folks with operating risk are Series A and beyond tech startups selling to other tech companies.
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