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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings). Profits, Founder Salaries, and/or Dividends Declared.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   In a bottom up approach, the forecast is built from actual user projections.   First , dividends. Dividends come in two basic flavors – cumulative and non-cumulative.