Remove Metrics Remove Revenue Remove Term Sheet Remove Venture Capital
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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60
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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. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. “Too Of the Inc. 5000 companies, only 6.5% raised from angels.

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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? There were no metrics. Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. We raised a seed round. About $1 million. Me: At what price? Me: With a cap?

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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How to raise money for your startup from VCs and investors in Asia

The Next Web

The venture capital landscape in Asia is varied and complex, as most of the active firms on the continent are concentrated in just a few areas. The term sheets tend to be fairly standardized and straightforward as well. Valuations are based more on typical later-stage type of metrics.

Asia 132
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SuperMac War Story 6: Building The Killer Team – Mission, Intent.

Steve Blank

And it was going to mention the two words that SuperMac marketing needed to live and breathe: revenue and profit. And the results weren’t the traditional PR metrics of number of articles or inches of ink. We were constantly creating metrics to see the effects of different PR messages, channels and audiences on end-user purchases.

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Looking for investors? Here’s how to value your startup

The Next Web

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry.

Valuation 167