Both Sides of the Table

APRIL 19, 2011

He tells the story of how he was out of cash, stressed out, nobody in LA or Silicon Valley would give him money, he had finally found an investor in Minneapolis but his venture bank was going to shut him down for breaking a “covenant&# in their agreement by not having enough cash in the bank. The answer?

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

The Startup Magazine

FEBRUARY 21, 2024

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. Firms invest significant resources in understanding the borrower’s business model, market position, and growth potential.

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

David Teten

JANUARY 19, 2021

Typical business stage. An already proven business model and its already valuable assets. Typical business model. Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Typically promissory note or non-voting common stock, with covenants.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

MARCH 9, 2011

  If plenty of cash flow regardless of plan for sale/retention of business: Senior bank debt based on cash flow coverage and new assets.    Appropriate covenants. Maybe Small Business Administration guaranteed loan.   If not enough cash flow but with the desire to retain the business --.

Finance 83

Finance Bootstrapping Startup Equity 83

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Unlike many RBI investors, a full 50% of our investment activity is in non-tech businesses. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC.

Revenue 60

Revenue Technical Review Software Review Equity 60

Lightspeed Venture Partners

DECEMBER 10, 2012

Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. These firms typically charge more than banks and have higher warrant coverage, but have fewer restrictions on the use of capital, no covenants, and will often lend more than a bank will.

Covenant 162

Covenant Warrant Southern California Los Angeles 162

This is going to be BIG.

AUGUST 28, 2011

Forget new business models for journalism. Remember the covenant that the music industry used to have with the consumer? By overdramatizing the leadup and missing the real threats presented by the storm—the flooding—the news media dropped the ball on its responsibility to inform its audience. It’s done.

Libya 141

Libya Syria Covenant New Jersey 141