David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.
Both Sides of the Table
JUNE 22, 2011
Ah, but today’s Internet companies have real revenue! And this is happening in mezzanine (pre-IPO) deals as well. When your competition does irrational things to grow fueled by low-cost capital it makes it harder for you to compete by playing by the conventional rules. I said that at the Founder Showcase, too. and profits!
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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?
YoungUpstarts
MAY 14, 2018
Then value the acquisition in the context of your business, giving consideration to the likely cost savings and potential revenue lift that can result from combined capabilities. Growth scenarios or turnarounds and fixes often require an infusion of cash beyond the cost of the acquisition.
K9 Ventures
APRIL 9, 2014
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. Hiring costs are up dramatically The cost of hiring top quality talent in the bay area has gone up dramatically.
K9 Ventures
OCTOBER 10, 2017
Yes, the infrastructure is cheap (to start), but the human costs have gone up dramatically. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). 6M-$15M used to scale customer acquisition and revenue). Series C/D is the new Mezzanine. Those times are long gone.
Scalable Startup
OCTOBER 26, 2011
The second round is often for some or all of the following – corporate growth, go to market, turn the prototype into a robust offering, marketing costs, or to hire a sales force. The second round can also be a mezzanine, or pre-IPO round, or even the IPO itself. Where is the market going? Meritech Capital Partners.
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