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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

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When Entry Multiples Don’t Matter

Ben's Blog

But, accurately forecasting the size, timing, and risk of cash flow over many years can be incredibly challenging, so many investors often rely on valuation multiples as a proxy for determining what a company is worth. A multiple is a company value divided by a metric. cash flows beyond that forecast period). Not too shabby!