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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. VII: Flexible VC, a New Model for Companies Targeting Profitability.

Equity 78
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

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Does Elon Musk + Peter Thiel = 3 or 1.5

Professor VC

one company running out of cash and another with cash but searching for a business model). Musk was the early winner taking the CEO role (for a brief period) in the merged company and the largest equity stake as well. It takes time for the business to catch up to these market expectations and valuation.

Merger 28