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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

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Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60
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WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things.

Engineer 152
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Why are Revenue-Based VCs investing in so many women & underrepresented founders?

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. of venture capital deals.

Revenue 60
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How The IBM PC Made Me Appreciate Entrepreneurs

Startup Professionals Musings

The burn rate was extremely high, with no one working for equity or deferred compensation. In enterprises, performance objectives are usually tied to internal processes, rather than beating competitors, customer acquisition, and revenue growth. Marty Zwilling First published on Inc.com on 10/24/2016.

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13 Red Flags To Avoid In Your Investor Funding Pitch

Startup Professionals Musings

Even non-profits need money to scale, but their pitch should be to philanthropists, not equity investors. Declare a $10 million valuation with no revenue or customers. Equity investors are buying a chunk of your company at today’s value, not what you think it may be worth in five years. Your future depends on it.

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7 Team Attributes That Can Make Any Idea Come Alive

Startup Professionals Musings

Even social entrepreneurs need milestones, quantifiable results, and revenue to sustain their value. Investors expect to hear annual revenues, average margins, customer acquisition costs and sales pipelines. Marty Zwilling First published on Entrepreneur.com on 05/18/2016. Focus on customer needs.