Remove Cap Table Remove Cofounder Remove Dilution Remove Marketing
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The Pros and Cons of Rando Rich People Investing in Your Startup

This is going to be BIG.

Some of these folks are founders and CEOs, but not at high-growth tech startups. While they might be generally smart, they’re unsophisticated investors who don’t know what the market is for where you are. Role When I was a lowly Analyst at Union Square Ventures, I had so many ideas for the founders we worked with.

.Net 88
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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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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

Revenue 60
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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

Obvious caveats to my POV here, most specifically: exposure is limited to largely the US/SiliconValley ecosystem, driven by our own portfolio, my friends and co-investors, the funds I’m a LP in, and our institutional LP relationships. Soft Acquisition Market. Whatever gets reported is just the tip of the iceberg.

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Entrepreneurs: Your instincts are always better than bad advice

The Next Web

Neil Rimer is a Partner and co-founder of Index Ventures. Yet, surprisingly, we continue to come across founders who have made significant mistakes in their early capital raises that we suspect go against their own instincts and jeopardize the foundations of the businesses they are building.

Cap Table 128
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Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Most founders who are raising capital look first to traditional equity VCs. 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. Less or no dilution. But should they?

Revenue 60
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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?