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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

His work on VC and small communities can be found at greatercolorado.vc/blog. When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Lower level of community familiarity. Of the Inc. 5000 companies, only 6.5% raised money from VCs and 7.7%

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Survivors

Both Sides of the Table

You find out those that have the fortitude to work out a new way forward, who can handle recapitalizations or downsizing or shutting down business lines or hiring whole new teams. How you failed is significantly more important than if you failed. Through failure you find out who the survivors are. I saw this in 2001-2003 and in 2008-2010.

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On the Road to Recap:

abovethecrowd.com

While not obvious on the surface, there has been a fundamental sea-change in the investment community that has made the incremental Unicorn investment a substantially more dangerous and complicated practice. Twelve to eighteen months later, you hit the road and do it again — super simple. If you over-fund the industry, aggregate returns fall.

IPO 40