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The Changing Structure of the VC Industry

Both Sides of the Table

The “big boom” in startup financing started around March 2009?—?more Early-stage VCs have realized that they need to capitalize on this trend, which is why many traditional VCs have set up “opportunity” funds that sit alongside their core funds as a means of capturing more private-market (pre IPO) value. and hasn’t abated.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Volatile, uncapped.

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Angel Investing 4 – Why You Need Deep Pockets to Win Big

Both Sides of the Table

But consider periods of time where the average time a company exists before acquisition or IPO is 7-10 years. “When our capital and participation has helped de-risk a business to the point where it is appropriate to follow on and finance growth, we want to step up to do our pro rata and beyond.&#. This is actually the norm.

Cap Table 283
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Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

The first milestone in a new startup’s financing is called ‘Seed Capital’ which refers to the initial investment raised by the founders from their friends and family, or commonly referred to as FFF (Friends, Family and Founders), who mostly use their personal assets. The return only happens when there is an exit via acquisition or an IPO.

Finance 93
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Is Dead Equity Crippling Your Company?

Altgate

Facebook’s IPO minted many millionaires and even billionaires. Instead, the dead equity languishes on the cap table, weighing down the startup and making it harder to attract and motivate the people who could impact its growth. Facebook’s situation is far from unique, even among recent tech IPOs.

Equity 44
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Is Dead Equity Crippling Your Company?

Altgate

Facebook’s IPO minted many millionaires and even billionaires. Instead, the dead equity languishes on the cap table, weighing down the startup and making it harder to attract and motivate the people who could impact its growth. Facebook’s situation is far from unique, even among recent tech IPOs.

Equity 28
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“I guess we’ll know we’ve made it when a woman can get away with behaving like Elon Musk.” Talking With VC Ashley Mayer About Finding Your Career, Taking Box Public, And Why She’s Not Interested In Reading Yet Another Female CEO Takedown

Hunter Walker

Hunter Walk: Ok, so we first met when you were leading comms at enterprise software company Box, a startup you joined when they were still pretty early and stayed at until post-IPO. HW: Anyone who’s been through an IPO, I always like to ask about the experience because it’s such a classic, if statistically rare, startup milestone.

IPO 91