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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

JANUARY 19, 2021

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.

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. But this equity round is going to be controlled completely by the VC who just did the recap.

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