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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. 20-30% is a common target IRR for investors. Early liquidity.