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.
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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. The opportunity: Use this as a negotiating point when bargaining for the deal. If you remove the owner, the business struggles and collapses.
YoungUpstarts
MAY 14, 2018
To safeguard your team from getting emotionally over-committed to a specific business, carefully balance the price being offered for the target, the strategic problem or opportunity it addresses, the likely near-term cash flow of the target, the integration strategy, the inherent risks and the deal structure.
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
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. You know, it's gonna be very broad, but what you should see is you should see the annual revenue number and the cash flow. (20:06): Is it likely to be an individual person?
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