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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? VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020.

Equity 78
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. This leads to the problem of “herding cats&# for entrepreneurs raising angel money. Photo credit: D. Blanchard/O’Reilly Media. and not a min.

Finance 286
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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors. Stages of Equity-based funding. ?

Startup 150
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How to calculate the equity split between co-founders in a startup

The Next Web

There are a lot of variables to go into calculating a fair equity split a startup team. So, a fair split, would be closer to 60/40 in favor of the funding founder, when diluted for the cash. To me, that is no different than financing the business. How do you manage your equity split in your company?

Cofounder 136
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Cash-strapped? How to pay for services with your startup’s equity

The Next Web

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. Pitfalls in sharing equity. While equity can be a great tool for compensating early on, the drawbacks are significant.

Equity 116
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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

One entrepreneur refrain I sometimes hear is “We want to raise some extra money for M&A activities.” It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. This is a red flag for VCs.

Burn Rate 247
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A Different Path To Startup Success: How To Avoid Taking Money And Losing Control

YoungUpstarts

Deciding whether to increase money or trade equity in the business for much needed assistance, could be a tough call. I raised money and traded equity, but with my venture, I had to make one of the toughest decisions, to build it with some assistance of co-founders. Both the choices tend to take away a few options. Plan, Plan and Plan.

Cofounder 124