Remove Business Model Remove Cost Remove Distribution Remove Dividend
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings). Profits, Founder Salaries, and/or Dividends Declared.

article thumbnail

8 Entrepreneur Mistakes That Turn Off Real Investors

Startup Professionals Musings

Undefined business model or very low gross margins. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. All internal teams need to have relevant skills and experience. Investors pass if they find conflicted team members.

Insiders

Sign Up for our Newsletter

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

article thumbnail

8 Funding Proposal Red Flags Every Startup Can Avoid

Startup Professionals Musings

Undefined business model or very low gross margins. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. All internal teams need to have relevant skills and experience. Investors pass if they find conflicted team members.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends. Let’s start at the end.

article thumbnail

Avoid New Venture Shortcuts That Scare Away Investors

Startup Professionals Musings

Undefined business model or very low gross margins. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. All internal teams need to have relevant skills and experience. Investors pass if they find conflicted team members.

article thumbnail

Convenience is Key for Successful Service Businesses

Up and Running

Over the past decade or two, the most prominent business model that has yielded positive results in the service sector over time is one that has brought convenience to its client base. For the mobile business enterprise, however, there is a new solution in today’s electronic world – the wireless credit card reader.

article thumbnail

Fixing Tech – A Manifesto from a Raving Capitalist

Start Up Blog

The High Cost of Free. While many of our digital services (like Facebook and Google) are free, they come with real costs. In order to do business and interact effectively, we need a single system. Another key feature of natural monopolies is that their marginal costs go down with more people using a single system.