David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC: Revenue -based. Yes, non-voting common shares (if converted).
ReadWriteStart
JUNE 1, 2020
The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. 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.
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Both Sides of the Table
JULY 29, 2010
People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). The downside is that people need to buy their stock. In fact, far better if you haven’t raised venture capital. Do it early.
Gust
OCTOBER 12, 2011
In my experience, a term of 12 to 24 months is common, with 12 months being on the short end. Thus, it’s in everyone’s best interest to see the startup raise more capital rather than declaring default and demanding repayment. First, a word about the maturity date.
Tim Keane
JANUARY 12, 2010
3] However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.
Pascal's View
MARCH 9, 2010
There has been a multi-year move among auditors, driven by demand for greater transparency in understanding the process behind the book valuation of private, illiquid investments, to bring more of a “mark to market” approach in the way the general partners of private equity partnerships value their portfolios. Share and Enjoy:
www.paulgraham.com
APRIL 28, 2010
A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. There never has to be atime when you have no revenues. Theres only common stock at this stage.
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