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What Is Venture Debt and How Should Startups Use It?

View from Seed

It can be lower cost and can either buy more time or accelerate growth. It’s generally got a lower cost compared to equity capital and can help support growth. If they can’t, then we want to know more about the existing investor syndicate, so we’re not the only ones at the table. What are some pros and cons?

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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. Flexible VC can allow Impact VCs to thread this needle.”. Emily Campbell, Esq.

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The Story Behind Our Investment In Fiddler Labs

Haystack

Algorithms are powering most of that flow, and these algorithms are often designed to maximize engagement, reduce costs, and the like. Social media is one of the biggest examples of this, inverting and transforming how information flows. This is what they call the “Black Box.”

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The Market Size Fallacy for Seed-Stage Startups

View from Seed

I once showed a company to another VC for an investment we were syndicating. The game plan is then to show accelerating user growth across a variety of user segments and understandable/declining acquisition costs. This investor loved the team and thought the solution they were building was compelling.

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The Market Size Fallacy for Seed-Stage Startups

View from Seed

I once showed a company to another VC for an investment we were syndicating. The game plan is then to show accelerating user growth across a variety of user segments and understandable/declining acquisition costs. This investor loved the team and thought the solution they were building was compelling.

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The investment that didn’t happen

K9 Ventures

I helped introduce the company to various angels and lead the effort to form a syndicate for their fund-raising round. The day before we were supposed to sign the term sheet for the investment, Like.com sued Ugmode (the parent company of Modista.com) for patent infringement.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Capital has built a free online tool for founders to calculate their cost of capital.