article thumbnail

Should your new VC fund use Revenue-Based Investing?

David Teten

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Greater transparency to limited partners. Kim Folson, Co-Founder, Founders First Capital, observed, “RBI financing is more intimate than traditional equity. Potentially could use SBIC financing.

Revenue 60
article thumbnail

The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

The Group is worth noting for: Investing their own private money, Reid Dennis would found Institutional Venture Partners in 1974 First group specifically investing in the valley’s electronics industry SBIC Act of 1958 During the cold war the launch of Sputnik-1 by the Soviet Union in 1957 both traumatized and galvanized the United States.