David Teten
JANUARY 21, 2021
This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?
Cracking the Code
OCTOBER 10, 2008
Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Michael Kassing.
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Tim Keane
AUGUST 20, 2009
Ask any of us who've experienced significant down rounds based on some or all of these things, and one begins to understand the cautionary nature of deal structures. the business, it will always be worth more to the entrepreneur as well as future investors, if any. up to $10MM in revenue.
grasshopperherder.com
SEPTEMBER 24, 2011
I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. The company did have some revenue and paying users, but not enough to make any judgement on the company’s future prospects. You don’t have a defensible business model. I’m wrong all the time.
Entrepreneurs-Journey.com by Yaro Starak
JANUARY 21, 2011
Although I knew I would be working in (not on) the business to some extent, the work turned out to be more than I anticipated, at least initially. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.
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