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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.

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Who are the Major Revenue-Based Investing VCs?

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

Revenue 60
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Understand how venture debt might shorten your projections. * If you have raised venture debt you might have even less time. Many venture debt lines have “covenants” that restrict you from going below a certain amount of cash in the bank (in normal times they are more common – in better times they are less common).

Burn Rate 383
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How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. . – Restrictive Covenants (nonsolicitation and noncompete restrictions). – Policy on sharing track record.

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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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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. The answer?

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Negotiating a Job Offer from a Private Equity/VC Portfolio Company

David Teten

You’re investing your time, reputation, network, and probably also capital. So I recommend use the framework of an investor: Venture capital investing checklist. Structuring and Negotiating Executive Compensation Packages: Addressing Pay, Severance, Restrictive Covenants, and More. Due Diligence as an Investor.