David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC: Revenue -based. Gross Revenues (generally 2-8%).

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

K9 Ventures

APRIL 9, 2014

The low supply and high demand is driving up the valuations and deal sizes. Threshold for an IPO is higher Ten years ago, if you had $20M in revenue you were ready to go public. If you have <$100M in revenue, you’re probably going to stay private. And the hiring costs are higher. Series C/D is the new Mezzanine.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

K9 Ventures

OCTOBER 10, 2017

Yes, the infrastructure is cheap (to start), but the human costs have gone up dramatically. In order for a company to attract a full Seed round ($2M – $3M), that company needs to show an almost completed product, an advanced prototype, or some kind of traction/demand metrics. Series C/D is the new Mezzanine.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Respondents deemed between 12%-16% of companies generating revenues to be essentially “worthless” and deemed 20%-26% of their pre-revenue investments to be “worthless.” Add to this that 72.7%

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62