article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78
article thumbnail

5 Risks Of Buying A Business And Profiting Off The Opportunities They Create

YoungUpstarts

But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. They manage all the customer relationships. The opportunity: Use this as a negotiating point when bargaining for the deal.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

article thumbnail

The global content playbook & how the internet actually works

Start Up Blog

Now they won’t share any of the potential advertising revenue or other prizes which come from direct customer relationships. And it’s licensing deal structures born of the late 1970’s cable TV era that create this back door leakage. The back door has been opened.

Global 48
article thumbnail

The Pre-Seed FAQ

K9 Ventures

Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). 6M-$15M used to scale customer acquisition and revenue). It used to be that a company could go public when it hit $20M in revenue. Q: How are most Pre-Seed deals structured? By definition, yes.

article thumbnail

The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

Just like every business thinks about their customers and what their customer wants, when you wanna sell your business, you are basically entering the same kind of world, but instead of your product or service, it's your business. Let's talk about some of the deal structures you've seen. 01:38): Yeah, sure. 09:23): Sure.

article thumbnail

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. An intrapreneur is the extreme; usually an intrapreneur’s employer owns 100% of the new business that she creates. Our model at Casual Corp.