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What are the costs of taking investor money?

Berkonomics

The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO. The post What are the costs of taking investor money? first appeared on BERKONOMICS.

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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

Private credit has proven resilient through the recent cycle of rising rates, and the ability to structure deals with covenants, collateral, and tailored repayment terms provides a level of protection and potential for value creation, making it a compelling option for investors.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

That said, nothing is cost-free. More complex cost of capital calculation. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Typically promissory note or non-voting common stock, with covenants.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Startup Lessons'

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Launchpad LA – More Details Revealed

Both Sides of the Table

There is no cost but you must physically be based in or move to Los Angeles for the 6 months of the program. He had a pile of debt and covenants that made him vulnerable if the debt holders wanted to play rough. Today we announced Launchpad LA V2. Full press release with more details is here.

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Several more real costs of taking outsider investments.

Berkonomics

The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO.

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What if you see juicy competitor information?

Berkonomics

And none of this is especially considered a trade secret, violating the unspoken covenant between competitor CEOs that there is a limit to such exchanges. What does a CEO do with this wonderful, rich information dropped at his door at no cost or obligation? How should you respond?