Remove Bankruptcy Remove Finance Remove Revenue Remove Venture Capital
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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 are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Having too little demand leads to bankruptcy. This part of a series to help you raise venture capital ?—?the

Burn Rate 247
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

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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). I’m guessing much of this was 101 to many readers.

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Should You Be Switching Your Business Entity To Protect Your Business From Further Loss?

YoungUpstarts

If your business is unable to weather the current economic storm and has to close or file bankruptcy, you can be held personally liable for any outstanding debts. Setting up a legal business entity for your business creates a “company” that is different from your personal identity and separate from your personal finances.

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Ample Hills Bankruptcy and Recovery: What Happened and What's Next for a Beloved Brand

This is going to be BIG.

They decided to raise venture capital money in order to build a factory, open new stores, and take advantage of their newfound fame to go into wholesale. Some key existings who didn’t want to see their prior money get lost wouldn’t budge on a dilutive financing, despite the fact that they knew where we were headed.

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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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8 Risky Business Investments That Paid Off Big

YoungUpstarts

Considering how incredibly popular Harley-Davidson is today, it’s hard to believe that the motorcycle company was ever on the verge of bankruptcy, but it’s true. Harley-Davidson experienced near-bankruptcy from 1969 to 1981 when the American Machine and Foundry (AMF) bought the company and turned it upside down. Harley-Davidson.