Remove Business Model Remove Covenant Remove Sales
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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.

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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. The mode purpose for funding is (in order of frequency) Sales, Marketing, Market Expansion, Product Development, and Hiring Employees. The average gross profit margin is 55%. The average cash balance is $191,164.

Revenue 60
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Master of Customer Acquisition, Matt Coffin, On Startups …

Both Sides of the Table

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?

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

Tim Keane

How to prepare a sales forecast for a business plan » March 09, 2011.   His entire income is based on his personal output and he’d like to hire several woodworkers, expand his sales to existing customers, and generate a profit in addition to his contributed labor.    Appropriate covenants.

Finance 83
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Shark Tank 2012 Holiday Episode Breakdown

Lightspeed Venture Partners

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