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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. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. 20-30% is a common target IRR for investors.

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Why Companies are Not Startups

Steve Blank

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. A business model guides an organization to create and deliver products/service and make money from it.

IRR 335
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5 Ways Today’s Market Allows Startups To Scale Faster

Startup Professionals Musings

While brand building used to be dominated by larger well-capitalized companies, today startups can afford to get their products in front of qualified leads around the globe at a fraction of the cost and in much less time. Investors measure their success by looking at the internal rate of return (IRR).

IRR 143
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7 Considerations In Choosing A Startup Funding Source

Startup Professionals Musings

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Both angel and VC investors are looking for solutions that scale easily (product versus service businesses), and both expect revenue growth that can reach the $20M mark by year five.

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7 Entrepreneur Questions To Select The Ideal Investor

Startup Professionals Musings

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Both angel and VC investors are looking for solutions that scale easily (product versus service businesses), and both expect revenue growth that can reach the $20M mark by year five.

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Fund Raising is a Means Not an End

Steve Blank

Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. Does our product or service solve a customer problem (product-market fit)? What is an IRR? Focus on product – market fit.

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Fund Raising is a Means Not an End

Steve Blank

Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. Does our product or service solve a customer problem (product-market fit)? What is an IRR? Focus on product – market fit.