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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Novel Growth Partners, Lighter Capital, Rev Up, Corl, Flow Capital. Of the Inc.

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Who are the Major Revenue-Based Investing VCs?

David Teten

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. In 2019 we partnered with several revenue-based lending providers, effectively creating a marketplace. “. Alternative Capital. “ You qualify if you have $5k+ MRR. Bigfoot Capital.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc. All of these items are postponed until the elusive priced equity round. It’s going to be great!”.

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An economics lesson for growing companies

Berkonomics

Read the loan covenants carefully. Then there is the loan audit fee, often more than $4,000 a year, to pay for the lender’s auditor to make sure the collateral and company are compliant with the covenants of the loan. A five-day float increases the actual interest rate by up to an additional 2% over the stated rate.

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Liquidity for Venture Backed Companies Still Comes Largely in One Flavor—Cash Acquisitions

Pascal's View

Denis Dougherty of Intersouth Partners was recently interviewed by Brian Gormley of The Wall Street Journal on the decade-long liquidity crisis that continues to plague the venture capital industry.

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The Community Comeback: 14 Ways Local Leaders Are Reshaping America

YoungUpstarts

They (not government) have to lead the way. Pensacola used a Covenant for the Community to guarantee that contractors would use local minorities in the revitalization of downtown. They’re managing incentives more thoughtfully. They’re partnering with government the right way. .

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Growth requires a different kind of capital.

Berkonomics

Loan covenants are always required that clearly state how much net equity, the minimum current ratio, and other minimum financial requirements must be maintained to be compliant, and state the penalties for non-compliance – which are always severe, often threatening to call or cancel the loan in its entirety.