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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

Private credit has proven resilient through the recent cycle of rising rates, and the ability to structure deals with covenants, collateral, and tailored repayment terms provides a level of protection and potential for value creation, making it a compelling option for investors.

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Good riddance to non-competes

OnlyOnce

When the Wall Street Journal says that “Sales staff, engineers, doctors and salon workers are among the most common types of workers affected by litigation of noncompete clauses…in 2022” that makes me sick to my stomach. Some restrictive covenants for a limited period of time for former employees are totally fair.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs.

Burn Rate 383
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What are the costs of taking investor money?

Berkonomics

The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO.

Cost 62
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Launchpad LA – More Details Revealed

Both Sides of the Table

He had a pile of debt and covenants that made him vulnerable if the debt holders wanted to play rough. He was able to raise money from a VC in Minneapolis called Split Rock , grow the business to over $200 million in sales and sell to Experian for nearly $380 million. The rest is history.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . However, some investors are using these tools in earlier, higher-risk companies. Governance.

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Who are the Major Revenue-Based Investing VCs?

David Teten

The mode purpose for funding is (in order of frequency) Sales, Marketing, Market Expansion, Product Development, and Hiring Employees. Like other RBI firms, Decathlon does not require warrants, governance involvement, or the types of financial covenants that are often associated with other venture debt type solutions.

Revenue 60