Remove Common Stock Remove Demand Remove Forecast Remove Founder
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections. These include: ·       Vesting of Founder Stock.   Oftentimes, term-sheets specify provisions under which there is not a majority on the board from either founders or investors.

article thumbnail

Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference. 3) Investor/Founder Mindset Challenges. An investor may say “we own 22% of the company”, or a founder may note, “I still own 31% of my company.”

Merger 53