Remove Business Model Remove Finance Remove Mezzanine
article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020. VII: Flexible VC, a New Model for Companies Targeting Profitability. IV: Should your new VC fund use Revenue-Based Investing?

Equity 78
article thumbnail

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

And this is happening in mezzanine (pre-IPO) deals as well. Or worse yet they may never get financed. Raise at “ the top end of normal &# but not so high that future financings in a corrected market become impossible. Those with strong business models suddenly stand out when the tide goes out. Have a cushion.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Typical business stage. An already proven business model and its already valuable assets. Typical business model.

article thumbnail

The 5 Key Stages of Equity Funding

Growthink Blog

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88
article thumbnail

Scaling the Chasm

Seeing Both Sides

Business Model: running a lot of experiments - pricing, packaging, value proposition. Financing: holy crap - we are running out of money in 6 months! Financing: The "hopes and dreams" financing stage is over. Financing: Is our market big enough to support another round (which puts the exit bar even higher)?

article thumbnail

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

I believe some VCs have entered the early-stage market as simply an option on future financing rounds. As some of the last generation of startups have gotten bigger many VCs have also chased later-stage investments that were traditionally dominated by growth equity or mezzanine funds. But obviously I’m biased.

article thumbnail

Think Your Start-up Is Venture Worthy? Think Again.

techcrunch.com

Tweet View Comments Sarah Lacy Feb 19, 2010 Pepperdine has a new study out that attempts to shed some light on the clubby, shadowy world of private finance. Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. A few more stats make that picture look worse.