YoungUpstarts
MAY 17, 2019
But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. The opportunity: Use this as a negotiating point when bargaining for the deal. If you remove the owner, the business struggles and collapses.
David Teten
JANUARY 21, 2021
This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?
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YoungUpstarts
MAY 14, 2018
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.
K9 Ventures
OCTOBER 10, 2017
Yes, the infrastructure is cheap (to start), but the human costs have gone up dramatically. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). 6M-$15M used to scale customer acquisition and revenue). Q: How are most Pre-Seed deals structured?
Duct Tape Marketing
FEBRUARY 16, 2023
07:47): Well, where are they gonna get the rest of the money and what's that gonna cost them? Let's talk about some of the deal structures you've seen. And that's gonna cost me money. You know, it's gonna be very broad, but what you should see is you should see the annual revenue number and the cash flow. (20:06):
David Teten
OCTOBER 1, 2015
I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. In exchange for equity, we discount the project cost, which is already low because we offshore most of our development, by 10-15%.
Cracking the Code
OCTOBER 10, 2008
Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Michael Kassing.
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