Dilution Early Stage Revenue Syndication 
David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.
View from Seed
APRIL 30, 2015
Especially in the early stages, so much about the company may change in how they think about product or go-to-market — and change multiple times — before raising an institutional round. If they can’t, then we want to know more about the existing investor syndicate, so we’re not the only ones at the table.
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View from Seed
JANUARY 26, 2016
With that in mind, let’s look at an illustration of these trends below, which demonstrates what’s been happening to early-stage financing rounds over the last 15 years or so. Series A investors invested quite early, often before product/market fit.
View from Seed
JUNE 30, 2015
As a founder, I think it’s easier to talk to potential investors about where they invest across the lifecycle of a company (whether it’s truly early-stage/early lifecycle, for instance), versus round stages like seed, series A, etc. Almost all VCs actually invest across this spectrum.
Both Sides of the Table
FEBRUARY 25, 2010
We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. I’ve offered to fund an early stage company where I promised cash in bank in less than 30 days.
Professor VC
JUNE 20, 2011
But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans). I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.
www.paulgraham.com
APRIL 28, 2010
There never has to be atime when you have no revenues. So if youre going to sell cheap stockto eminent angels, do it early, when its natural for the companyto have a low valuation. Some angel investors join together in syndicates. Whatkind of anti-dilution protection do they want? In Boston thebiggest is the CommonAngels.
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