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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. So it makes it a lot more challenging when you have debt on the books that isn’t as longer term as equity. What are some pros and cons?

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The Summer Solstice And Seed Stage Squeeze

Haystack

If you’ve been following my tweets lately, you’ve read some of my quick musings on the state of the seed market this summer. years is not a long arc – I have not experienced a prolonged down market as a private investor. We know private markets hold the key to 100x or even 1,000x multiples. In short, in my 6.5

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What Are Pre-Seed Rounds and Why Do They Exist?

View from Seed

There are a number of factors that have contributed to the rise of pre-seed rounds, but the strongest have been the frothy late-stage financing market, coupled with both the scaling-up of some of the early winners in the institutional seed ecosystem and the scaling-down of some larger funds that retrenched after the financial crisis.

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Texas Startup Manifesto 2.0

Austin Startup

Texas is the most promising technology market in the United States. If you want to launch a new business, this is a great market to launch from because you can easily reach all of the major Texas cities with one office. The larger Dallas metro-region is the fourth largest in the country and Houston metro-region is the fifth.

Texas 90
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The 10x Angel. The 0x Angel.

Hunter Walker

One reason Satya and I thought we had Product Market Fit for starting Homebrew was behavior we saw as angel investors. If you just need the money, stick unknown angels in an AngelList Syndicate so they have more limited information rights. And relationships are long term equities. Avoid these folks. That’s a good thing.).

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Genesis Rounds vs. Institutional Seed Rounds

Rob Go

Over the past couple years, there has been an emerging bifurcation in the seed investing market. Often priced equity, but often convertible note. Most seed rounds tended to look like “genesis rounds” This market gap, coupled with the capital efficiency of software brought on the rise of seed funds. or even more.