article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Volatile, uncapped. Flexible VC: Revenue -based. Retain 100%.

article thumbnail

How to Be an Angel Investor

www.paulgraham.com

Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. In a syndicate there is usually a"lead" investor who negotiates the terms with the startup. Dont feel like you have to join a syndicate, though. This isyet another problem that gets solved for you by syndicates.