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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similarly, when Flexible VC structures are based off of the founder’s own compensation (often via salary or dividends), investors are specifically tying their returns to the financial success of the founder. Founder Earnings” (Founder Salaries + Dividends + Retained Earnings). Profits, Founder Salaries, and/or Dividends Declared.

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8 Entrepreneur Mistakes That Turn Off Real Investors

Startup Professionals Musings

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

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8 Funding Proposal Red Flags Every Startup Can Avoid

Startup Professionals Musings

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

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

Startup Company Lawyer

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. I suspect that this seems reasonable if there is basically no due diligence due to the early stage of the companies. (By Legal fees.

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

Tim Keane

  Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends. In some cases, dividends are often paid at the discretion of the board and not required by the terms.   A cumulative dividend compounds annually.

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Avoid New Venture Shortcuts That Scare Away Investors

Startup Professionals Musings

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

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Should Startups Announce Their Funding?

Both Sides of the Table

If you’re a very early stage startup that just raised your first angel money it is very possible that the funding announcement will be your first big tech news. So in my opinion you should design your funding story to get wide distribution. I don’t be swayed by those who tell you otherwise.

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