Remove Cap Table Remove Operations Remove Revenue Remove Startup
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The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

These are people that didn’t make their money through a tech startup or startup investing. Some of these folks are founders and CEOs, but not at high-growth tech startups. They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. Perhaps they inherited it.

.Net 89
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Who are the Major Revenue-Based Investing VCs?

David Teten

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.

Revenue 60
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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. How Complicated is Your Cap Table? Cap Table issues are seldom understood by entrepreneurs. There are two other factors you may consider. Let me explain.

Burn Rate 150
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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.

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Does Your VC have an Investment Thesis, or a Hypothesis?

David Teten

We summarize how they interrelate in the table below. A typical VC thesis: “we invest in tech startups in Europe at an early stage” However, our experience shows that in many cases: . These firms also sometimes target startups that serve a specific kind of customer (e.g. The phrase is quite ambiguous.

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These Two Questions Are All You Need To Understand The Next Few Years of Venture & Startups

Hunter Walker

Why I’m Not Telling Every Startup To ‘Pull The Brakes’ Just Yet. 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. Similarly, for a variety of reasons, the music stopped.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

I walk through below how progressive investors are using technology and analytics throughout all of their operations. See Bessemer Venture Partners’ A comprehensive guide to security for startups. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence. 1) Manage the firm .