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

David Teten

According to Lighter Capital ,“ the RBI market has grown rapidly, contrasting sharply with a decrease in the number of early-stage angel and VC fundings ”. However, many industry experts question the accuracy of early-stage market data, given many startups are no longer filing their Form Ds.

Revenue 60
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Bad Notes on Venture Capital

Both Sides of the Table

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. So a convertible note was easier. Your A round?

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Ten million users is the new one million users

cdixon.org

Facebook’s market cap is about half of what most tech investors expected before the IPO. - For consumer startups with transactional models, e.g. e-commerce, the number of users required is often far lower because revenue is the more important metric. VCs are increasingly focusing on B2B for early-stage investments.

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Bad Notes on VC

Gust

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. So a convertible note was easier. How will you price the next round?