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Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Of course, these are important ingredients to growth, but the – perhaps unconventional – truth is that this kind of growth can be riskier and less compelling to investors than growth through acquisition. Set clear financial objectives for an acquisition and create benchmarks to gauge attractiveness of potential target companies.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Mezzanine lending (a rough comparable) has a 18-23% required rate of return. Yes, typically preferred equity. 15-20% sold per round. On average, founders own just 43% of equity by Series B , declining thereafter.

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Today’s Fun – Gnip, Twitter, Uncommon Stock, and Pre-Seed Rounds

Feld Thoughts

6M-$15M used to scale customer acquisition and revenue). Series C/D is the new Mezzanine. . (~$2M used get for building product, establishing product-market fit and early revenue). Series A is the new Series B. (~6M-$15M Series B is the new Series C.

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The New Venture Landscape

K9 Ventures

6M-$15M used to scale customer acquisition and revenue) Series B is the new Series C. Series C/D is the new Mezzanine. Opinion VC Mezzanine pre-seed seed Series A Series B Series C venture capital venture landscape Venture Spiral' Welcome to the new venture landscape! K9 Ventures is also on Facebook and Google+.

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The Pre-Seed FAQ

K9 Ventures

6M-$15M used to scale customer acquisition and revenue). Series C/D is the new Mezzanine. . (~$2M used get for building product, establishing product-market fit and early revenue). Series A is the new Series B. (~6M-$15M Series B is the new Series C. Q: Why haven’t I heard of Pre-Seed rounds before?

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ProfessorVC: Survey says VC's invest on Gut Instinct

Professor VC

Blink starts with the anecdote of the Getty Museums $10 million acquisition of a rare Greek statue dating from the 6th century BC. One other chart worth noting is the the expected returns from various private capital providers (Banks, Asset based lenders, Mezzanine, Private Equity and VC). Back to the survey.

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Scaling the Chasm

Seeing Both Sides

Should we pursue adjacent M&A or tuck in acquisitions to expand our market footprint? Financing: Do we have the metrics to support a growth or mezzanine round? Business Model: Now that we are at a reasonable scale, why are our gross margins so low and what can we do to fix it? Is it time to consider an exit? >$100 million.