Steve Blank

MARCH 16, 2016

Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Steve Blank

JANUARY 22, 2014

Few entrepreneurs find this scalable and repeatable business model because it’s not easy. as a distribution channel have vastly reduced the amount of capital a startup needs at the early stage when the risk is greatest. The cloud , open-source development tools and web 2.0 A good return to your investors is 20% per year.

Early Stage 292

Early Stage Silicon Valley Oregon Technical Review 292

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Steve Blank

JULY 15, 2010

If you take funding from a venture capital firm or angel investor and want to build a large, enduring company (rather than sell it to the highest bidder), this isn’t the decade to do it. The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Here’s why.

Venture Capital 303

Venture Capital IPO Liquidity Event Entrepreneur 303

Steve Blank

JUNE 23, 2016

These resulting business models made them look incredibly profitable. They knew how to execute the current business model. Intel under their last two CEOs delivered more revenue and profit than any ever before. Risk capital has provided financing for new ideas in the form of startups. Lessons Learned.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Up and Running

SEPTEMBER 19, 2017

That is to say, they’d want to be able to control costs and revenues at a high level. Because for a private equity firm, investing in a company at an early stage is as much about assessing the riskiness and likelihood of success of the individual founders as opposed to the viability of the company’s business model. Conclusion.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Steve Blank

JULY 19, 2010

And that they’ll emerge from this fog of war with a scalable business model. Most founding CEO’s don’t know that they’re cannon fodder in the search for a business model. Where’s My Liquidity Event. It’s About Finding the Business Model. The New Founding CEO Vesting Model.

Vesting 262

Vesting Liquidity Event Venture Capital Founder Vesting 262