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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

(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
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Praying to the God of Valuation

Both Sides of the Table

We had nascent revenues, ridiculous cost structures and unrealistic valuations. SEEING THINGS FROM THE VC SIDE OF THE TABLE While I was a VC in 2007 & 2008 those were dead years because the market again evaporated due the the Global Financial Crisis (GFC). Until we weren’t. Nobody cared about our valuations any more.

Valuation 466
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Why are Revenue-Based VCs investing in so many women & underrepresented founders?

David Teten

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. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. ” .

Revenue 60
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9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

Look for needs that have a global appeal to a wide demographic. Get support from credible industry groups and partners. Global considerations include culture differences and translation. You need a stable customer base with an automatically renewing revenue stream, such as the subscription model.

Merger 386
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Meet the 32 Israeli Centaurs that reached $100M in ARR

VC Cafe

“The Centaur is a business that reaches $100 million of annual recurring revenue (ARR)—a rare breed of cloud business, part of an elite subset of the growing unicorn herd.” Today there are over 1,000 unicorns globally. Scaling to $100 Million from Bessemer Venture Partners. ” Bessemer.

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Transformify Freelancer Management System (FMS) Partners With Xoxoday to Boost Its Expansion Across Asia

Transformify

Transformify , a UK-based Freelancer Management System (FMS), has partnered up with Xoxoday , an HR Software company based in India that has offices in Singapore, Australia, the US, Ireland and the Philippines, to boost its expansion across Asia. There is a clear synergy between Transformify Freelancer Management System (FMS) and Xoxoday.

Asia 98
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ESG in Venture Capital: Interview with Blue Future Partners (VC Fund of Funds)

David Teten

Blue Future Partners, a venture capital fund of funds, recently interviewed me on ESG in venture capital. In an article you wrote for Techcrunch in 2019 about Revenue Based Investing you mentioned that “ traditional equity VC is biased structurally against some women and underrepresented founders”. Firm revenues. Why is that?