Flexible VC, a New Model for Companies Targeting Profitability
David Teten
JANUARY 19, 2021
This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. 20-30% is a common target IRR for investors. If a company grows profitably or raises another VC round, the return cap gets repaid ahead of schedule.
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