Remove Business Model Remove Cost Remove Covenant
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

That said, nothing is cost-free. More complex cost of capital calculation. 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. Typical business stage. Typical business model. Venture Debt.

article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Repaid 12-36 months with ability to prepay at reduced cost. Unlike many RBI investors, a full 50% of our investment activity is in non-tech businesses. Capital need of up to $1.5M over next 12 months.

Revenue 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Venture Debt 101

Up and Running

Luckily for founders, the ways in which you can finance your startup are varied based on your business model, your preference, your goals, and timeline, and so on. The cost of venture debt capital is very, very low. Covenants: borrowers face fewer operational restrictions or covenants with venture debt.

article thumbnail

How should I finance my new venture? - Startups and angels: Along.

Tim Keane

The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  Business success is the ultimate goal. 2]   Aligning interests in structure: cost and risk.   Appropriate covenants. Maybe Small Business Administration guaranteed loan.

Finance 83
article thumbnail

Shark Tank 2012 Holiday Episode Breakdown

Lightspeed Venture Partners

Revenue is driven by children’s parties, which cost $600-$4,000 for a two hour party for 15 kids, which apparently is the market price for kids parties in LA. Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. By all accounts, the Coop is quite successful.

Covenant 162
article thumbnail

Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

The goal is to transform dormant or underutilized assets into active capital that supports your business. It is also the time to take a hard look at your business model. Simultaneously, we conducted a thorough operational review to identify inefficiencies and areas for cost reduction.