article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

article thumbnail

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

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Shark Tank Season 4 week 5 breakdown

Lightspeed Venture Partners

The entrepreneur is seeking not just money, but primarily contacts with buyers at big retailers to get wider distribution. Instead of taking equity, he asked for a $2 per dress royalty until he recovered his capital, then $1 per dress thereafter. They argue over who can help Cozy Bug with distribution more. Kevin offered $50k.

Equity 164
article thumbnail

Does Elon Musk + Peter Thiel = 3 or 1.5

Professor VC

Musk was the early winner taking the CEO role (for a brief period) in the merged company and the largest equity stake as well. Luckily, Google was one of the 150 and did ultimately return the fund assuming the LP was smart enough to hold the stock after distribution. Most never make it there. Back to that PayPal merger.

Merger 28