Remove Dilution Remove Partner Remove Sales Remove Syndication
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5% return cap.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

Use good judgment, talk to your co-founders/investors/lawyers, and partner with a bank that values transparency and relationships such as SVB.]. And it’s that important because all companies will go through good times and tough times, and we’ll want to make sure we’ve got the right partner on the other side.

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Time is the Enemy of All Deals

Both Sides of the Table

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. VC, sales, biz dev, M&A or otherwise. Yes, this was stupid. Any deal.

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How to Fund a Startup

www.paulgraham.com

Some angel investors join together in syndicates. Whatkind of anti-dilution protection do they want? The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. Not all the people who work at VC firms are partners. Hell if they know.In