David Teten

JANUARY 19, 2021

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. Governance. Hard covenants with potentially strict penalties. .

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Up and Running

APRIL 2, 2015

One exception to the rule is that the federal Small Business Administration (SBA) has programs that guarantee some portion of startup costs for new businesses so banks can lend them money with the government, reducing the banks’ risk. As I explained above, banks do lend money to startups. Agreement on future ratios.

Balance Sheet 60

Balance Sheet SBA Covenant Technical Review 60

David Teten

AUGUST 19, 2019

Repaid 12-36 months with ability to prepay at reduced cost. Like other RBI firms, Decathlon does not require warrants, governance involvement, or the types of financial covenants that are often associated with other venture debt type solutions. Capital need of up to $1.5M over next 12 months. Facility sizes of 2-5x MRR .

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

MARCH 14, 2012

The Generally Accepted Accounting Principles, or GAAP, are the set of rules that govern financial accounting in businesses. A demonarchy is defined as a political system governed by a demon. EBITDA is often used in loans covenants. Bookkeepers use them, CPAs use them, and executives are familiar with them.

Non-disclosure Agreement 202

Non-disclosure Agreement NDA IPO Covenant 202

Berkonomics

DECEMBER 21, 2017

But this time, we concentrate upon governance changes. The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO. Let’s talk about the reality of taking money from professional investors.

Covenant 97

Covenant Cost Angel Groups Angel Investor 97

Berkonomics

FEBRUARY 8, 2024

But this time, we concentrate upon governance changes. The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO. The post What are the costs of taking investor money?

Cost 62

Cost Covenant Angel Groups Angel Investor 62

Berkonomics

JULY 16, 2020

Read the loan covenants carefully. Other lender tricks adding to the true cost. It is important to calculate the true cost of such money. Then there is the loan audit fee, often more than $4,000 a year, to pay for the lender’s auditor to make sure the collateral and company are compliant with the covenants of the loan.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62