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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places. If you really want to understand the nuances in venture capital financing documents, please review the NVCA model venture capital financing documents. . Co-sale rights.

Finance 70
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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] This results in a range of sale prices; in this example from $118.6MM to $21MM.

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What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. This team is talented.

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What is convertible equity (or a convertible security)?

Startup Company Lawyer

At the maturity date, there is a risk that investors may demand repayment. ” The theory is that the number of seed stage Series A deals led by venture capital firms is decreasing, meaning that it will be difficult for startups to raise a new round of financing. Why convertible equity is better than convertible debt.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? GCVF is pioneering the future of venture capital and high growth startups for all small communities. II: Who are the major Revenue-Based Investing VCs? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78
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VCs Get Paid Back First

ithacaVC

I read an article this morning in DealBook titled “ In Venture Capital Deals, Not Every Founder Will be a Zuckerberg “ Go ahead and give it a read. The article states “When venture capitalists invest, they typically demand preferred shares that accrue a yearly dividend of about 8 percent.