Remove Business Model Remove Common Stock Remove Product Remove Revenue
article thumbnail

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. Flexible VC: Revenue -based. Of the Inc.

article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

You must have a prototype or a minimum viable product (MVP). One should also establish the proof of concept of your business before you can qualify for funding. Ground rules of funding. ? Firstly, not all businesses are fundable. This kind of funding is only applicable if the product is unique and innovative.

Startup 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

Some even insisted that all prior preferred stock had to be converted to common stock. For the common shareholders (employees, advisors, and previous investors), a cram down is a big middle finger, as it comes with reverse split – meaning your common shares are now worth 1/10th, 1/100th or even 1/1000th of their previous value.

Cram Down 408
article thumbnail

How to Fund Your Startup Without Losing Control

Up and Running

Rule 1: Bootstrap until you have a viable product. Background: Justin Klemm’s analytics and website uptime startup, Ghost Inspector , wants to revolutionize the way businesses manage their ecommerce funnels. Takeaway lesson: A shocking number of technology startups never even get their first product out the door.

article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. Board Control.

Founder 252
article thumbnail

Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi. Arizona Bay has also blended equity payments with revenue-sharing deals. Business Owners Council.

Arizona 40
article thumbnail

The 5 Key Stages of Equity Funding

Growthink Blog

Nevertheless, this is when you get the startup money to kickstart your business with the bare essentials needed to begin making and fulfilling your first sales. Put everything else on your "wish list" to buy with revenues from sales or additional financing. Series B is the round that follows series A in early stage financing.

Equity 88