Remove Finance Remove IRR Remove Management Remove Operations
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Too often, investment structures force the management team to make decisions between misaligned growth and investment (return) objectives. Early liquidity.

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ESADE Business School Commencement Speech

Steve Blank

In fact, it was only 7 years ago that Apple shipped its first iPhone and Google introduced its Android operating system. But the world you lead will be much different from the one your professors knew or your predecessors managed. The question for all of you is … “ What will it take to inspire and manage this kind of innovation?”.

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How Covid-19 Has Impacted VC Portfolios

View from Seed

VC’s also manage multiple funds that get deployed over 10+ years, with new investments happening over the first 2-3 years of a fund’s life. Companies that are largely in R&D phase can operate business as usual, assuming there is capital to fund the company for 18-24 more months. Vintage year differences. Reshuffling the deck.

Portfolio 217
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Why Companies are Not Startups

Steve Blank

20 th century Management Tools for Execution In the 20 th century business schools and consulting firms developed an amazing management stack to assist companies to execute. These tools brought clarity to corporate strategy, product line extension strategies, and made product management a repeatable process. StageGate Process.

IRR 335
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Improved Liquidity, Investment Flexibility, and Labor Arbitrage

Growthink Blog

One reader reference Gust Founder David Rose’s new book - “ Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups ” and to Rose’s main contention that to access the 25% IRR potential of the asset class one must hold positions in not less than 20 companies. He asked, “ Is this practical advice? Labor Arbitrage.

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Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Requires regular monthly payments and careful cash management. But should they?

Revenue 60
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When Entry Multiples Don’t Matter

Ben's Blog

The conventional wisdom finance professionals are often taught is that you should not pay a higher multiple today than what you’d expect to be paid upon exit — that is, your entry multiple should equal your exit multiple. Not too shabby! But would that be a good deal for the shareholders entering at this stage?