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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

By comparison, traditional VC has a bankruptcy rate of 30-40%. Their 2016 Fund was the first and largest fund so far using this structure, with $25M AUM. Purpose Ventures’ deal structures are bespoke to each company. According to Indie.VC

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

BTW: putting your staff into a separate corporate entity and then forcing bankruptcy is a time honored way of getting rid of undesirable employees without having to pay their severance packages.). Not that they were trying to take advantage of me necessarily, but it happened because of the deal structure.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

The top performing SaaS companies typically achieve annual customer renewal rates above 90% - with most of the churn due to death (bankruptcies) or marriage (acquisitions) - and over 100% renewals on a dollar value basis due to up-sells into this installed base. Cashflow is the other key metric.