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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.

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What Is Venture Debt and How Should Startups Use It?

View from Seed

Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. So it makes it a lot more challenging when you have debt on the books that isn’t as longer term as equity. What are some pros and cons?

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The 10x Angel. The 0x Angel.

Hunter Walker

If you just need the money, stick unknown angels in an AngelList Syndicate so they have more limited information rights. They’re willing to spend more time than their ownership % might warrant. And relationships are long term equities. Avoid these folks. You can reference check angels just like you would VCs or employees.

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Pari Passu or F.U.little guy

Professor VC

One area I''ve noticed a lot more recently are angel investors and seed stage funds trying to grab a little bit extra, whether it''s warrants for leading the round, advisor shares to go along with the investment, or a common stock stake for just being who they are. The other investor could''ve certainly lobbied to get me an allocation.