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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. Feenix Venture Partners has a unique investment model that couples investment capital with payment processing services. However, according to Bryce Roberts, co-founder of Indie.VC, only 0.6%

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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

VC’s money comes from mostly institutional investors called LPs (limited partners). 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. They also trust VC’s to determine the right price to pay for the company securities that they buy.

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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, your investors will slip it in the pre-money and cost you millions of dollars of effective valuation. Given that many companies are doing convertible note bridge financings as their seed round, this seems to come up relatively often. Don’t lose this game.