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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

Those employees and operators, who often have some book wealth now (or are running syndicates on AngelList or acting as a scout for another fund) can easily dump $50K-$100K into one of their ex-colleague’s new startups, or put this money into their friend’s new startup, or their friend’s new hot deal.

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

View from Seed

This has allowed these firms to invest larger amounts at the later end of the seed spectrum, and some have even started to lead or syndicate Series A rounds with others. Third, founders at this stage have an incentive to minimize dilution at the point when their equity is the least valuable.

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Texas Startup Manifesto 2.0

Austin Startup

In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. Private Equity According to Pitchbook data, there are over 600 private equity firms in Texas. Lockheed Martin is building the F-35 aircraft in Fort Worth.

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

Hunter Walker

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. Or when an exciting A Round may “dilute” them (no, you own less of something much bigger. Avoid these folks. That’s a good thing.).

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Genesis Rounds vs. Institutional Seed Rounds

Rob Go

Often priced equity, but often convertible note. As a result, many seed funds have pulled back, started making later stage investments, and even focusing more on mini-Series A’s with a syndicate of seed funds. More often these days, there are more like $1.5M or even more. Post-product, early customer data, somtimes real revenue.