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7 Considerations In Choosing A Startup Funding Source

Startup Professionals Musings

Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations.

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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. Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Short track record.

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7 Entrepreneur Questions To Select The Ideal Investor

Startup Professionals Musings

Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations.

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How Covid-19 Has Impacted VC Portfolios

View from Seed

Some early stage businesses may even be able to get to CFBE fairly quickly. Mid-stage portfolios can be more acutely impacted if many companies have fat cost structures and were investing heavily in growth that is not materializing. These tend to vacillate a lot early on, but converge as portfolios mature.

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How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations.

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Fund Raising is a Means Not an End

Steve Blank

And at this early stage you’ll be giving up a larger percentage of your firm to investors. A seed round can come from friends, family, Kickstarter, angels – and most importantly, early customers. What is an IRR? You invest the dollars to create end-user demand and drive those customers into your sales channel.

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Why Entrepreneurs Seem to Be Growing Fangs

Seeing Both Sides

During most periods, there has been a supply and demand imbalance that favors the VCs. A little IRR math shows the price of this elongated time to liquidity – a 5x return in 5 years yields a 38% IRR. If you find yourself in a market transaction and don’t know for sure that you are the wolf, then, sadly, you are the sheep.

IRR 36