The Startup Magazine

FEBRUARY 21, 2024

The goal is to transform dormant or underutilized assets into active capital that supports your business. It is also the time to take a hard look at your business model. Firms invest significant resources in understanding the borrower’s business model, market position, and growth potential.

Technical Review 130

Technical Review Due Diligence Bankruptcy Intellectual Property 130

David Teten

JANUARY 19, 2021

Typical business stage. An already proven business model and its already valuable assets. Typical business model. Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Typically promissory note or non-voting common stock, with covenants.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

APRIL 19, 2011

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. The answer?

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. The mode purpose for funding is (in order of frequency) Sales, Marketing, Market Expansion, Product Development, and Hiring Employees. The average gross profit margin is 55%. The average cash balance is $191,164.

Revenue 60

Revenue Technical Review Software Review Equity 60

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011.   His entire income is based on his personal output and he’d like to hire several woodworkers, expand his sales to existing customers, and generate a profit in addition to his contributed labor.    Appropriate covenants.

Finance 83

Finance Bootstrapping Startup Equity 83

Lightspeed Venture Partners

DECEMBER 10, 2012

Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. These firms typically charge more than banks and have higher warrant coverage, but have fewer restrictions on the use of capital, no covenants, and will often lend more than a bank will.

Covenant 162

Covenant Warrant Southern California Los Angeles 162