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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. One of the reasons that RBI VC is growing in both feasibility and popularity is that more businesses are becoming metrics-driven , which means that investors have better line of site on their future revenues.

Revenue 60
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Ten million users is the new one million users

cdixon.org

Some consequences: - For consumer startups with non-transactional models (ad-based or unknown business models), you need something closer to 10 million users versus 1 million users to get Series A funded. - Hence, many early-stage consumer startups are switching to transactional models. -