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The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. Some of these folks are founders and CEOs, but not at high-growth tech startups. It will save everyone a lot of cost and time.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

Should you co-found your company with a software development shop? I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. What are the terms of their relationship with the founder?

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

To learn more about this space, I suggest join an online community I co-founded, PEVCTech. . Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. The 11 Steps of Investing in Private Companies.

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Who are the Major Revenue-Based Investing VCs?

David Teten

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. For RBI, return caps of 1.2x-1.8x

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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

According to an interview with Elon Musk, this campaign cost Paypal about $60 million , which most Silicon Valley historians would consider money well spent. It would cost a tremendous amount of money to run such a program. However, I know what you are thinking, “how would you ever fund such an endeavor?” Billions of dollars.

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“It takes a year to find great executives so you must always look down the field.” Proof’s Pat Kinsel on why he believes a VCs most critical task is to make sure the WRONG person doesn’t get hired into a startup.

Hunter Walker

Fast forward a few years and we finally connect via mutual friends and Twitter threads, but Proof is Too Successful for our early stage capital, meaning I admire from afar versus from the cap table. Most of us cut costs and reduced our team sizes, but what we also needed to do was reset how we work. An executive now at a big co.

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