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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

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

Tim Keane

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . This is why a bottom up approach is more credible.

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Behind Every Great Product

SVPG

Between working with the co-founders on the strategy, validating concepts with the users, assessing the analytics, driving features and functionality with the team, and working with finance on the new business model, marketing on acquisition, and the warehouse on fulfillment, you can imagine the workload Kate faced on a daily basis.

Product 60
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Startup Founder Agreements

blog.simeonov.com

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. An email would do. The FastIgnite one is two pages.

Founder 44
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Startups in stealth mode need one piece of advice - Discussion

news.ycombinator.com

His quote on the subject, "no amount of finance will cure mismanagement". flavor of a question-and-answer, poll-your-friends site with a distant revenue model and no user acquisition strategy. Ran if for two years before we shut it down with almost no revenue achieved. From the link: Oh, and what was the company?

Stealth 41
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Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. If you believe in it – then finance whatever you can yourself. Once you’ve done that – then. do something else.

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The Sharp End of the Stick « Steve Blank

Steve Blank

But without sales there is no revenue, and without revenue there is no company. All the strategic thinking in the world won’t make up for a missed revenue plan. If sales revenue and profits are high enough, we could take the company public or sell it, and the stock would be worth more than the paper it was printed on.