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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs.

Burn Rate 247
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The Startup Guide to Affordable Accountancy

The Startup Magazine

With staggering statistics like these, it’s clear that startups need to come up with affordable ways to handle their accounting services needs in order to avoid bankruptcy. Numerous accounting systems such as QuickBooks Online, FreshBooks, and Wave exist to help small business owners perform basic accounting tasks in the early stages.

CPA 70
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Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. Poorly calculated LTVs can become BVs (bankruptcy values). That is what finances rapid growth.

Metrics 150
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On Funding?—?Shots on Goal

Both Sides of the Table

We’ve had two companies where we had to bridge finance them several times before they eventually IPO’d We had a portfolio company turn-down a $350 million acquisition because they wanted at least $400 million. It was ~30 days from bankruptcy. Early-stage venture capital is about extreme winners.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. —> Individual company bankruptcy risk —-> Traditional Equity VC . Typical business stage. Short track record.

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My Life as a CEO (and VC): Chief Psychologist

Both Sides of the Table

This is the failure of many early-stage companies when they try to scale. Another prominent CEO was on the verge of both company & personal bankruptcy when we had lunch. Some entrepreneurs make the mistake of never devolving power. They are control freaks and have to own all of the decisions. And the opposite is also true.

Ireland 319
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Knowledge Is Power: Convertible Note Financing Terms, Part III

Gust

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. Same, except at the option of the noteholders (per the term sheet example above).

Finance 107