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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. Flexible VC: Revenue -based. Of the Inc.

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Does Your VC have an Investment Thesis, or a Hypothesis?

David Teten

(co-written with Stephane Nasser , co-founder of OpenVC , an open-source initiative to collect and analyze all VC theses.). OpenVC is a new, open-source initiative to collect and analyze all publicly available VC theses, to help founders more efficiently find the right investors, and vice-versa. .

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Developer love vs revenue

BeyondVC

Great blog post by CockroachDB on open source business models and their plans to make money: If you’re serious about building a company around open source software, you must walk a narrow path: introduce paid features too soon, and risk curtailing adoption. Optimizing for Price at Seed Stage is a Mistake.

Revenue 60
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The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). I highlighted how these tectonic technical shifts have altered the VC industry in this post: How Open-Source & Horizontal Computing Spawned the Micro VC Market.

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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

You don’t need to buy expensive software – there are free open source solutions for nearly everything. So angel and seed stage investors’ returns will be dependent on good times continuing or on the ability of their portfolio companies to get financed. Price MUST be in a certain range.

LP 311
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Primer On Funding Trends for Early-Stage Startups

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Series-seed round. Super Angels.

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New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Series-seed round. Super Angels.