David Teten

JANUARY 19, 2021

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.

Cofounder 78

Cofounder Technical Review Dividend Equity 78

Steve Blank

APRIL 26, 2022

Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. While cram downs never went away, the flood of capital in the last decade meant that most companies could raise another round. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

blog.simeonov.com

FEBRUARY 22, 2010

The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company. It can be deferred, with or without interest, to be paid after a financing or once revenues start coming in. There are multiple ways to handle this before the company has cash.

Founder 44

Founder Vesting Agile Startup 44

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike).

IPO 40

IPO Term Sheet Valuation Silicon Valley 40

Both Sides of the Table

AUGUST 9, 2011

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. On the positive side, corporate profits are up, their balance sheets have been repaired and they have recapitalized themselves to have lower amounts of debt relative to equity. When I first got into the industry it was 2007.

Stock 305

Stock Technical Review Marketing Greece 305