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

David Teten

John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. The idea is for us to take advantage of a cost/expense that our borrowers are already incurring (credit card fees) and structure an investment that truly aligns our interests.

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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

They trust the judgment of the VCs to source, finance, help manage and then create some sort of exit for the investments that they make. You get the bridge in place so you breathe a sigh of relief that you’re going to live to fight another day but suddenly you because overly cautious.

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Thoughts on Convertible Notes

K9 Ventures

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.

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The Basics of Small Business Loans [WEBINAR]

Up and Running

The cost: it’s much more profitable for traditional lenders to do a two million dollar loan, or a three million dollar loan than doing a $150,000 loan or $100,000 loan. That’s why for these reasons, some of the banks are and traditional financing sources are not as focused on the small business market. Hopefully that does. Scott: Okay.

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The Option Pool Shuffle

venturehacks.com

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.