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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. Flexible VC: Revenue -based. Of the Inc.

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ESADE Business School Commencement Speech

Steve Blank

Companies horde cash and squeeze the most revenue and margin from the money they use. In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products.

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Why Companies are Not Startups

Steve Blank

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. A business model guides an organization to create and deliver products/service and make money from it.

IRR 335
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Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue 60
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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

I had just left Salesforce.com where I was VP, Products, after they had acquired my second startup. As I was trying to figure out the role I wanted to play in the VC world I decided I wanted to focus on businesses that were building deeply technical products to solve problems for business users. Over the past 2.5

IP 223
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Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production. They knew how to execute the current business model.

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Angel Investment Criteria

SoCal CTO

Bob is heavily focused on ROI (and team/product). For example, TCA’s evaluation criteria first bullet is: A market opportunity sufficiently large to create a business that can grow to at least $50 million in annual revenues. But it seems like Bob would be a candidate. But, this is not my experience with Angel groups. So get real.