Deal Structure Hiring Revenue Startup 
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?
YoungUpstarts
NOVEMBER 27, 2018
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.
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Both Sides of the Table
NOVEMBER 13, 2014
Startup CEO experience (Founded P.S. XO along with my good friend Soleil Moon Frye. Helped merge company with Seedling – on track to do $20 million combined revenue in 2015 – will now become Chairman). People often ask me what VCs look for when we hire partners and many have asked how to become VCs themselves one day.
YoungUpstarts
MAY 17, 2019
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.
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. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e.,
Duct Tape Marketing
FEBRUARY 16, 2023
The reason people pay for goodwill is to avoid the danger and risk of a startup. Let's talk about some of the deal structures you've seen. 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): Now, that's what goodwill is. 09:23): Sure.
Cracking the Code
OCTOBER 10, 2008
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. Great list! Philippe Botteri.
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