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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

This empathy is coupled with a firsthand appreciation of the transformative power of strategic, patient capital – not just as a financial resource but as a catalyst for innovation, growth, and long-term value creation. Explore asset-based lending options where loans are provided based on the value of specific assets.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

That is why these businesses are often valued more highly than other types of businesses. Your value creation must be at least 3x the amount of cash your burning or you’re wasting investor value. So money spent should add equity value or create IP that eventually will. Growth vs. Profitability.

Burn Rate 383
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What are the costs of taking investor money?

Berkonomics

But the intent of these “forced” placements of a representative on the board is obviously to watch over the company’s use of invested funds and to help grow the company in value.

Cost 62
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . Composition of Returns. Example VC. Yes, typically preferred equity. 15-20% sold per round.

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What if you see juicy competitor information?

Berkonomics

[Email readers, continue here…] All of this was immensely helpful in strategic planning and marketing, even though to this day I do not think those CEOs were aware of the value of the information so easily given.

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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. The answer?

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An economics lesson for growing companies

Berkonomics

If the equity value of a company is growing at the same rate as the company, say 40% per year, almost any form of debt financing may be preferable as a way of preventing further dilution from issuing additional equity. Read the loan covenants carefully. Even more add-on charges. Back to loans costing less than dilution of equity.