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5 Risks Of Buying A Business And Profiting Off The Opportunities They Create

YoungUpstarts

The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out.

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Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

To safeguard your team from getting emotionally over-committed to a specific business, carefully balance the price being offered for the target, the strategic problem or opportunity it addresses, the likely near-term cash flow of the target, the integration strategy, the inherent risks and the deal structure.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

Versatile has built out a suite of no-cost portfolio acceleration services to help its companies succeed. Purpose Ventures’ deal structures are bespoke to each company. Founders have the discretion to buy out almost all of Versatile VC’s stake by paying an agreed-upon percentage of revenues. Details here.

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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

They’ll therefore systematically seek to invest in startups at the lowest cost-basis possible. As a funding conversation progresses from initial to subsequent meetings, the topics of round structure and pricing become much more natural.

Valuation 336
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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. In exchange for equity, we discount the project cost, which is already low because we offshore most of our development, by 10-15%.

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

This handful of people is extremely and unabashedly cheap, as they’re fully self-aware of their role within the funding ecosystem and are accordingly systematically seeking to invest in startups at the lowest cost-basis possible.

Valuation 136
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Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I believe in maxing out tax advantageous vehicles like the 401(k) and Roth IRA, and dollar cost investing over time in no to low load mutual funds, including index funds. Establishing this website cost me less than $2,000 and a ton of man hours, headaches and heart burns to go with it. Where do I get the money to invest in the markets?