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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. That said, nothing is cost-free. More complex cost of capital calculation. Transaction costs. Legal costs typically $5K-$50K .

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed. So how does this work in practice? No problem.

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No Plan Survives First Contact With Customers – Business Plans versus Business Models

Steve Blank

They collected information that justified their assumptions about the problem, opportunity, market size, their solution and competitors and the their team, They rolled up a 5-year sales forecast with assumptions about their revenue model, pricing, sales, marketing, customer acquisition cost, etc. It was an exquisitely crafted plan.

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Setting Up Your Accounting System

Feld Thoughts

Build a financial model that forecasts the P&L. Revenues and costs should both be based off of a robust set of assumptions. Tie the P&L forecast to the Balance Sheet and Cash Flow Statement and generate snapshots of what the Financial Statements will look like each year for the next 5 years. historical data).

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. EShares is an increasingly popular tool in our portfolio for tracking private company cap tables. The only problem that faces startup investors now is how to mine this new data layer efficiently to increase returns.”.

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Out of the Crisis #7, Brian Chesky Part 1: running Airbnb in crisis mode, being multi-stakeholder, and re-founding the company

Startup Lessons Learned

Brian Chesky : And also humans are not good at forecasting or creating a mental model around something that's never happened before. That meant of course initially raising money and cutting costs. We have to manage our stakeholders, raise money, diversify our business, and cut costs." And it doesn't cost significantly more.

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These Two Questions Are All You Need To Understand The Next Few Years of Venture & Startups

Hunter Walker

But you need to remain great and investable while also managing your costs, extending your runway, tightening your operating plan, and so on. Do you understand your cost structure and can you manage to a forecastable growth rate. Do you understand your cost structure and can you manage to a forecastable growth rate.

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