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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

That said, nothing is cost-free. More complex cost of capital calculation. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Typical business stage. Typical business model. Cost of capital.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

And this is happening in mezzanine (pre-IPO) deals as well. Those with strong business models suddenly stand out when the tide goes out. When your competition does irrational things to grow fueled by low-cost capital it makes it harder for you to compete by playing by the conventional rules. Why does all this matter?

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

With a portfolio that includes food, tech, and services, the fund is industry-agnostic and focused on the overlooked and underrepresented with high-margin business models. Versatile has built out a suite of no-cost portfolio acceleration services to help its companies succeed. Details here.

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Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

If you don’t want to read that post, the summary is: Open source computing drove computing costs down 90%, which spurred innovation in technology. Open cloud led by Amazon with their AWS services drove total operating costs down by 90%. This led to an explosion in startups.

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Think Your Start-up Is Venture Worthy? Think Again.

techcrunch.com

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Especially since even Youtube is still struggling to try find a viable business model. The cost of money is steep, and only works in certain verticals, of which software is NOT one.

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Scaling the Chasm

Seeing Both Sides

Business Model: running a lot of experiments - pricing, packaging, value proposition. Business Model: Now that we are at a reasonable scale, why are our gross margins so low and what can we do to fix it? Business Model: If we''re not profitable at this point, we better be growing > 50%/year.