article thumbnail

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

And this is happening in mezzanine (pre-IPO) deals as well. Huge structural under-employment in much of the country and full employment in some niche tech markets where it’s impossible to hire developers, designers or sales professionals. And post IPO deals, although these tend to correct more quickly. Why does all this matter?

article thumbnail

The New Venture Landscape

K9 Ventures

Hiring costs are up dramatically The cost of hiring top quality talent in the bay area has gone up dramatically. Top engineering talent today has a bimodal distribution. At the same time, since the hiring costs are much higher, the companies need to spend more money on recruiting and retaining top talent.

Mezzanine 134
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

Jonathan sometimes refers to their investments as “micro-mezzanine” because “mezz is typically structured as a contractual periodic payment, with some equity-like upside, but subordinate to other debt… so most lenders look at it like equity. As of late 2020, we’ve deployed approximately $4M across 23 investments. “We

Equity 78
article thumbnail

The Pre-Seed FAQ

K9 Ventures

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Series C/D is the new Mezzanine. Engineering Capital. Series A is the new Series B. (~6M-$15M Series B is the new Series C. Afore Capital.

article thumbnail

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

As some of the last generation of startups have gotten bigger many VCs have also chased later-stage investments that were traditionally dominated by growth equity or mezzanine funds. Most ramen profitable businesses achieve profitability because the founding team is paying themselves very little and hiring almost no staff.