Remove IRR Remove Management Remove Operations Remove Revenue
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. 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. Flexible VC 101: Equity Meets Revenue Share. Of the Inc.

article thumbnail

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. Companies horde cash and squeeze the most revenue and margin from the money they use. Innovation.

Insiders

Sign Up for our Newsletter

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

article thumbnail

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
article thumbnail

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

David Teten

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue 60
article thumbnail

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?

article thumbnail

When Entry Multiples Don’t Matter

Ben's Blog

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” Multiples are not only used to value companies today but also to value companies several years down the line.

article thumbnail

Venture Funds as Products. What We Changed for Homebrew III.

Hunter Walker

One consistent LP complaint I hear about new’ish fund managers is that they forget a bunch of fund construction and portfolio modeling decisions are connected. Our J Curve and early IRR may look worse than other funds. “What did you change about Homebrew III to better fit ‘seed phases’ versus seed rounds ?” That’s a great question!

Product 82