Deal Structure Equity Management Revenue 
David Teten
JANUARY 21, 2021
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?
YoungUpstarts
NOVEMBER 27, 2018
From there, it’s time to inquire what the value of the company currently is and if their investment is going towards equity or loans. Typically, when a financial investment plan appears to be legally sound and beneficially appealing, the deal accounts for a total of 50% of the predicted return on investment.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
David Teten
OCTOBER 1, 2015
Not surprisingly, the list above also is ranked from least to most equity stake in an investment for the investor, relative to the cash they invest. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e., equity that belongs to departed cofounders)? The cliffs?
YoungUpstarts
MAY 17, 2019
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.
YoungUpstarts
MAY 14, 2018
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. by Kenneth H.
grasshopperherder.com
SEPTEMBER 24, 2011
Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. Three Card Monty Corporate Structures.
Duct Tape Marketing
FEBRUARY 16, 2023
because they'll come into the business and take over the owner's position and role, and they'll start to manage the business. So maybe they would have some home equity they could pull out or some savings. Let's talk about some of the deal structures you've seen. Is it likely to be an individual person? 09:23): Sure.
Expert insights. Personalized for you.
78 
Let's personalize your content