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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company.

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Shark Tank 2012 Holiday Episode Breakdown

Lightspeed Venture Partners

Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. These firms typically charge more than banks and have higher warrant coverage, but have fewer restrictions on the use of capital, no covenants, and will often lend more than a bank will.

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