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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

JANUARY 19, 2021

When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.”

Cofounder 78
Cofounder Technical Review Equity Dividend 78
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The Silliness Of Recapping Seed Rounds

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company. And developing a reputation for recapping seed rounds is, in my book, silly.

Recapitalization 70
Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70
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