Remove Dilution Remove Metrics Remove Recapitalization Remove Sales
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

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On the Road to Recap:

abovethecrowd.com

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike). It will also minimize future dilution.

IPO 40