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.

Revenue 60

Revenue Technical Review Software Review Equity 60

The Startup Magazine

FEBRUARY 21, 2024

Are there new revenue streams you can tap into? Private credit has proven resilient through the recent cycle of rising rates, and the ability to structure deals with covenants, collateral, and tailored repayment terms provides a level of protection and potential for value creation, making it a compelling option for investors.

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Net burn is the amount of money you are losing per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

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. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Berkonomics

FEBRUARY 22, 2024

A fair example In my former industry, I became an informal centralized source for knowledge about the revenues of each of the many competitors, with a special skill for asking just the right questions to obtain the information. Can you guess what percentage your revenue comes from recurring sources such as maintenance revenues?

Covenant 62

Covenant Revenue Email Employee 62

Up and Running

NOVEMBER 25, 2020

When comparing franchisors’ Item 7 disclosures, there are a number of factors you will want to keep in mind, including: Franchisors’ Item 7 figures are estimates only, and you will need to independently assess your costs to open a franchise. Not all franchisors include the same costs in their Item 7 disclosures.

Covenant 89

Covenant Due Diligence United States Operations 89

Tim Keane

MARCH 9, 2011

The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  2]   Aligning interests in structure: cost and risk.   Appropriate covenants.   About the same cost as #2 but more flexible if repayment terms slip a bit. Possibilities: 1. 

Finance 83

Finance Bootstrapping Startup Equity 83