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Who Should be on Your Startup Board?

Both Sides of the Table

A-round venture capital firms will almost certainly make it a requirement that they get a board seat upon financing. If you are a super hot commodity then you may possible retain some board control through the B-round of financing with a 3–2 structure where the 2 is one seat for the A investor and one for the B investor.

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The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. The “big boom” in startup financing started around March 2009?—?more and the bigger funds can’t get in directly. more than 5 years ago?—?and and hasn’t abated.

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How is the VC Asset Class Doing?

View from Seed

Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. The trends described above in VC performance have an upstream effect on Limited Partners which is somewhat counter-intuitive. Most LPs are trying to manage some targeted asset allocation.

LP 256
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Too often, investment structures force the management team to make decisions between misaligned growth and investment (return) objectives. Early liquidity.

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Micro-VC fund management and capital account statements

David Cohen

Further, I thought it would also be appreciated by her more sophisticated high net worth investors, because many of them will have personal financing reporting prepared quarterly by a family office or personal accountant or tax planner. The post Micro-VC fund management and capital account statements appeared first on Hi, I'm David G.

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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Does the traditional VC financing model make sense for all companies? 2018 also had the fewest number of angel-led financing rounds since before 2010. John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. Absolutely not.

Revenue 60
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What do you give up when you take outside investors?

Berkonomics

They tolerate you and your management when the numbers are a bit murky but with an explanation that is believable and correctable. Draconian terms? We know why investors “join” your company… So be aware that professional investors are in your company for the eventual large profits at the liquidity event. That’s just the facts.