article thumbnail

Why are Revenue-Based VCs investing in so many women & underrepresented founders?

David Teten

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. ” .

Revenue 60
article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

Early Employees To help with this discussion, let me start with a definition of "early employee." " Steve Blank divides the individuals associated with startups as: Founders Early Employees (Employees # 1-25) Later Employees (Employees # 26-125) The reality is that the definition of founder and employee is not clear.

Insiders

Sign Up for our Newsletter

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

article thumbnail

The top 10 companies investing billions in the Metaverse

VC Cafe

Given the ‘fuzzy’ period we’re in, where we still struggle with a definition of the Metaverse, it’s easy to dismiss it all as a fad. billion revenue in 2021 for Epic Games and was played by 83.3 billion revenue in 2021, a 107% increase year-on-year. Fortnite generated $5.8 but still lost $2.8

IP 206
article thumbnail

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

article thumbnail

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

buy out an entire company for its revenue and profits. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly.

article thumbnail

Is Going for Rapid Growth Always Good? Aren’t Startups So Much More?

Both Sides of the Table

After all, growth equals high valuations and loads of venture capital! Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. But my definition of the word is much broader. In revenue terms our first two years of sales were $2.1 And headlines. And approbation.

article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Incubators and Accelerators.

Startup 150