Remove Finance Remove Management Remove Recapitalization Remove Venture Capital
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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. Funder Category. Example VC.

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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

Finance where needed. I need leaders who manage in good times and bad.To build a large company you need to manage through economic cycles. 2010 was the year of the “super angel&# and 2011 has to date been the year of unbelievably highly priced B,C & D rounds of venture capital. We need some visibility.

Stock 305
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Silicon Valley Frontlines: Two Tales of "Working For Equity"

philipsmith.typepad.com

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game. Business Management.

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On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.”

IPO 40
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The Silliness Of Recapping Seed Rounds

Feld Thoughts

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company. A company raises $1m of seed money from angels in a convertible note with a $6m cap. It’s not pretty, but it happens.