David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. I had realized that I didn’t have it within me to be as good of a player as many of them did but I had the skills to help as mentor, coach, friend, sparing partner and patient capital provider. Until we weren’t. Nobody cared about our valuations any more.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

OCTOBER 16, 2022

Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Supportive co-founder and executive positions.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

David Teten

MARCH 14, 2018

My Partners at HOF Capital are younger than I am, which means that we have a half-century horizon for the franchise we are building. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. So we think about scaling a lot.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

MAY 22, 2020

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. When did this effort really start, including pivots?

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. 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.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

FEBRUARY 18, 2023

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. When did this effort really start, including pivots?

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

ReadWriteStart

DECEMBER 15, 2022

Client work serves as an additional source of revenue to form new startups. This outside work provides a valuable source of revenue able to be used to fund operations. Over time, this revenue reduces the dependency on outside venture capital sources. It also provides critical domain experience in a variety of business sectors.

Incubator 188

Incubator Startup Software Developers Software Development 188

Up and Running

MAY 15, 2014

When I was going through the co-founder “dating” process, I’d found a potential partner through my network who seemed to be perfect. At the end of the month, we’d evaluate the partnership and discuss equity. Finding the right business partner for me. I got customers, found partnerships, and generated revenues.

Partner 113

Partner Cofounder Equity Metrics 113

Both Sides of the Table

MAY 19, 2010

Our guest this week on #TWiVC was Dana Settle , partner at Greycroft Partners , a venture capital firm with offices in New York and Los Angeles. Note that these are “gross” revenue numbers. Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. OTHER DEALS: 1.

Partner 240

Partner New York City Cofounder Syndicate 240

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. PEVCTech is partnering with Blue Future Partners to run the first large-scale survey of VCs’ technology stack. Greylock Partners. But we’re doing it slowly. VC Firm. $

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

JANUARY 18, 2020

Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Supportive co-founder and executive positions.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

ConversionXL

JANUARY 18, 2022

It partners with sales to close more revenue, informs product teams to deliver better products, and in some cases, co-owns demand generation activities with marketing teams. Founder Nathan Barry launched in 2013 to help creators sell their books and courses but failed to meet revenue goals and eventually stalled.

Marketing 110

Marketing Product Audience Equity 110

Both Sides of the Table

MAY 27, 2013

Understanding where your VC partner sits in their respective fund and where their fund is in the cycle of its investment lifecycle will help you understand your VCs behavior. In his tenure as CEO of DataSift we have never missed a monthly revenue figure. You may know how much to pay in cash or equity for your new VP Engineering.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

VC Cafe

SEPTEMBER 10, 2021

Toya is a female-led studio partnering with the biggest platforms in the gaming industry to develop and promote games that reflect equal opportunities, diverse characters, and more dynamic storylines across the gender spectrum. It takes a LOT of courage to say no to potential revenue, especially in the very early stages of a startup.

Technical Review 178

Technical Review South Korea Due Diligence IP 178

David Teten

JULY 24, 2019

If you’re looking for a job in venture capital (or private equity), here is a list of compensation benchmarks, plus all the recruiters I’m aware of who do searches for roles inside venture capital firms, Analyst through Partner. Heidrick: PRIVATE EQUITY COMPENSATION TRENDS IN NORTH AMERICA: 2018. Amity Search Partners.

Venture Capital 60

Venture Capital Private Equity Technical Review North America 60

Startup Professionals Musings

MAY 18, 2020

With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Favor profitability over revenue and user growth. Use your equity for key executives and business partners.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Startup Professionals Musings

APRIL 17, 2023

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

SEPTEMBER 30, 2013

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Only real results count.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

David Teten

JANUARY 21, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Startup Professionals Musings

JUNE 25, 2012

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Bartering services for equity.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

JULY 27, 2020

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. Bankers do not contribute equity. The short answer is that some banks will help, if you do your homework. Money from other sources.

Silicon Valley 406

Silicon Valley Equity Startup Finance 406

Startup Professionals Musings

AUGUST 31, 2012

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Only real results count.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

NOVEMBER 1, 2014

Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Supportive co-founder and executive positions.

Entrepreneur 266

Entrepreneur Advisory Board Dividend Angel Investor 266

Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Ancillary objectives, like retiring existing debt, buying a building or paying salaries to people with equity ownership will not get traction.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

www.inc.com

SEPTEMBER 24, 2011

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

OCTOBER 8, 2023

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Look to grants and strategic partners for seed funding. Opportunity sizing and financial projections must be credible.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

YoungUpstarts

DECEMBER 14, 2016

by Jeff Stark, Audit Partner at Sensiba San Filippo. Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation. Jeff Stark is an Audit Partner at Sensiba San Filippo. Employees and contractors.

Acquisition 100

Acquisition Intellectual Property Technical Review Due Diligence 100

Steve Blank

MARCH 16, 2016

Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). The Bad News. The Deal With the Devil.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

ReadWriteStart

AUGUST 26, 2022

How to Scale Unicorns With Partner David Zhang, TVC. Joining us for this episode is our partner David Zhang, Partner at TCV (( Technology Crossover Ventures ). I’m a partner at TCV, which we founded in 1996. And now we are much more careful about revenue quality revenues. Jonathan Siddharth .

Partner 132

Partner Cofounder Retention Acquisition 132

Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Bartering services for equity.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

JUNE 17, 2011

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Only real results count.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

The Startup Magazine

FEBRUARY 21, 2024

The most poignant of these challenges was the quest for capital partners, which was not just about securing capital but about finding collaborators who were willing to believe in the vision and commit to the long-term journey. Are there new revenue streams you can tap into? Are there inefficiencies that you can iron out?

Technical Review 138

Technical Review Due Diligence Bankruptcy Intellectual Property 138

Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

YoungUpstarts

DECEMBER 31, 2018

Building extensive experience in the financial service industry over a twenty year career, Donato Sferra began his financial career as an equity research analyst at TD Securities, specializing in auto parts, solar and automation. Hillcrest Merchant Partners is already involved with some of the top companies in the cannabis space.

Partner 127

Partner Venture Capital United States Canada 127