article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. We determine a salary cap with the founder based on a software engineer in the closest major city.

Equity 78
article thumbnail

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (in this case, the quality of the team, product, and market opportunity) and the demand (how many competitive alternatives there are to any one given funder, including non-consumption).

Valuation 336
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I was trading real heavy hours for heavy dollars, and led a very mobile, demanding and by choice, a pressure packed lifestyle. I travelled all over the world wherever business deals were happening, gained tremendous experience and exposure to the Corporate landscape, and learned invaluable life lessons in my career.

article thumbnail

Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (the quality of the team, product, & market) and demand (how many competitive alternatives there are to any one given funder, including non-consumption).

Valuation 136
article thumbnail

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. 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. Philippe Botteri.