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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

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9 Steps to Handle Business Loan Rejection

Up and Running

As you do this, frame the conversation right. Where you borrow money from angel investors or venture capitalists willing to lend money to startups for more interest and usually an equity kicker as well. Giving a small percentage of ownership is called giving an equity kicker.

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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

2) Conversion Right (Investor-Friendly). The second approach is the most investor-friendly, and it is a provision that permits the noteholders to convert the notes into equity (or otherwise grants them a certain percentage of the sale proceeds), based on an agreed-upon valuation of the startup. 1) Automatic Conversion.

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Why Great Leadership Starts With Open Hearted Conversations

Duct Tape Marketing

Edward Sullivan (05:36): I mean, that is exactly right. They want more equity, but 10 times more important is that they're leaving toxic work cultures. So you might, uh, not be surprised that right now with everyone starting to go back to the office and COVID feels like it's mostly over, everybody wants to have a team offsite.

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How Indie.vc Cash Distributions Work

Bryce Dot VC

equity amount. The equity conversion right remains in place even if the 5x cap is hit. We fully anticipate that any future funding from VCs will also require us to waive any rights we have to future cash distributions and we are prepared to do so.

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How Fractional CMOs Are Reshaping Business Strategy

Duct Tape Marketing

They'll come to meet time and time again saying, we got a billion dollar idea, and this is gonna be massive and take equity in the company and this and that. And that usually alone gives 'em a good 15, 20% boost in revenue and conversions right off the bat. Uh, because a lot of entrepreneurs, as you know, have big goals.

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