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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

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Get Rich by Tricking AI

Start Up Blog

Bonus – I was on The Australian Finance Podcast. Health Care – 10% Invest in leading pharmaceutical or healthcare companies with a wide range of products, strong R&D pipelines, and consistent revenue growth. Utilities – 5% Select utility companies with stable earnings and cash flows, along with a history of paying dividends.

ChatGPT 62
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6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment.

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5 Financial Concepts Every Startup Founder Should Know

The Startup Magazine

Compared to Accounting, Finance is ruthlessly forward looking. The basic lesson that founders can learn about asset valuation is that Accounting is past and Finance is future. Compounding is the ability of an asset to generate earnings that are reinvested in order to generate exponential revenue growth. Asset valuation.

Founder 148
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How Startup Valuations are Driving Company Equity

ReadWriteStart

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Dividends paid and capital gains realized on a per-share basis provide ordinary shareholders with a way to participate in the profits stream of the company. The establishment of a dividend policy. What is Company Equity?

Valuation 108
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The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

In the interim, there is no market for the shares, and no dividends or interest. Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment.

Cram Down 148