article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. 20-30% is a common target IRR for investors.