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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Cash collateral.

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Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. They knew how to execute the current business model.

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Valuing Startup Employee Options

David Teten

I’ve often found it helpful to have on hand a simple model showing the impact of each financing stages on all team members, suitable for sharing with everyone in the company. By definition, IRR is calculated using amount invested, amount received at some point in the future, and time passed between the two cash flows.

Employee 155
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Paul Graham and The World Out There

This is going to be BIG.

Since Airbnb, however, it feels like not only is YC missing another billion dollar plus home run, but the percent of companies worth $40 million (a standard YC has used in the press), either by financing or exit, seems low. My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. That''s 25%.

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ProfessorVC: Bootstrapping 101

Professor VC

His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. His goal in building the company was to spend 3 years building value and find a good home for the engineers and product. I also teach Entrepreneurial Finance at San Jose State.

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Benchmarking Performance: Your Options, Dos, Don'ts and To-Die-Fors!

Occam's Razor

Outcomes of the conversations with your Finance team and Sr. Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). Any big shifts in investment (marketing, customer experience, team sizes, tools). And other such things.

Analytics 133
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ESG in Venture Capital: Interview with Blue Future Partners (VC Fund of Funds)

David Teten

. – Indiegogo.com is a crowd-funding platform allowing contributors to empower hundreds of thousands of inventors, musicians, do-gooders, filmmakers – and many more – to bring their dreams to life. – Clarity.com proactively advises you on managing your personal finances efficiently. Goldman Sachs bought Clarity for ~$100m. .