Business Model Entrepreneur Liquidation Preference Partner 
Steve Blank
MARCH 16, 2016
VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). BTW, Angel investors do not have limited partners, and often invest for reasons other than just for financial gain (e.g., The Deal With the Devil. Successful Clinical trials?
genylabs.typepad.com
SEPTEMBER 24, 2011
EMERGENT RESEARCH is focused on better understanding the small business sector of the US and global economy. Steve and Carolyn are partners at Emergent Research and Senior Fellows at the Society for New Communications Research. The Economic Stimulus Package: Whats in it for Growing Businesses? Defining Small Business Innovation.
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David Teten
AUGUST 21, 2019
These entrepreneurs want to maintain two major options: 1) To raise VC later (or not), and/or. 2) To sell their businesses when they want – early, mid term, or never.” . But you also can’t run the company forever, since investors need a liquidity event. RBI investors usually don’t take equity. Optionality.
Growthink Blog
MAY 23, 2011
An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest.
abovethecrowd.com
FEBRUARY 24, 2015
Buying into such a notion is dangerous – dangerous for the entrepreneur and dangerous for the investor. As a simple example, many investors and entrepreneurs do not realize that coupon or discount use is a contra-revenue event when it comes to revenue recognition. You must subtract it from your top-line revenue.
Both Sides of the Table
JUNE 14, 2010
Having raised too much money at my first company only to be buried under huge liquidation preferences and a huge board with divergent interests I have a bias for smaller funding rounds and capital efficiency. I believe that this creates more opportunities for both entrepreneurs (who have more exit options) and for investors.
Both Sides of the Table
FEBRUARY 14, 2016
Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. ” “This will be great for VCs and bad for entrepreneurs.” What is the True Sentiment of VCs? ” “Sure, prices are dropping.
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