Remove Deal Structure Remove Entrepreneur Remove Revenue Remove Startup
article thumbnail

Put A Coin In It! Invest In Early Stage Startups To See Maximum ROI

YoungUpstarts

Investing has always (and will always) come with a long laundry list of liabilities that can deter even the most experienced investors from making a generous contribution to a startup or early-stage company they believe in. The financial set up pertaining to any sealed investment is a crucial piece of the startup assessment puzzle.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

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?

Equity 78
Insiders

Sign Up for our Newsletter

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

article thumbnail

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

YoungUpstarts

Why start from scratch when you can get a great deal on what someone else started? In today’s sexy startup culture, buying an existing business has lost its vogue. 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.

article thumbnail

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

David Teten

I’ve seen a range of options for supporting entrepreneurs, which I can rank from least to most involvement in companies by investors: financier VCs, e.g., Correlation Ventures. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e., mentor VCs, e.g., most VCs.

article thumbnail

Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

Startups and angels: Along the way to success. Who the entrepreneur takes money from (see this post ) is always more important than the terms. "  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors. 

article thumbnail

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

Most entrepreneurs would love to be in a position to have to decide! There are plenty of folks who wouldn’t sell their company for a billion dollars; Jason Fried and Joel Spolsky are public examples from the bootstrapped startup world. That means you have to be that sure that that’s the number, regardless of deal structure.

Sales 235
article thumbnail

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

Cracking the Code

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! Philippe Botteri.