David Teten

JANUARY 19, 2021

Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. That said, nothing is cost-free. More complex cost of capital calculation. Inversely, if the company has slower than predicted growth, the effective cost of capital is automatically lowered. Governance.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

MARCH 9, 2011

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

Finance Bootstrapping Startup Equity 83

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. So your business has to have hard assets it can pledge to back up a business loan.

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. Unlike many RBI investors, a full 50% of our investment activity is in non-tech businesses. 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.

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

JUNE 17, 2020

Following from that, is there an operational plan that can be implemented to lower costs while salvaging the competitive advantage of the company? Which contracts are critical for the business to continue operations? Is there a “force majeure” provision that applies to your business’s obligations under the applicable agreement?

Bankruptcy 179

Bankruptcy Covenant Florida Balance Sheet 179

Lightspeed Venture Partners

DECEMBER 10, 2012

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. Even after paying the two founders $100,000 collectively in salary, the business still made a profit in the $125,000 to $150,000 range.

Covenant 162

Covenant Warrant Southern California Los Angeles 162

YoungUpstarts

JUNE 28, 2017

Many small business start ups head straight for a business loan but it is often difficult to get a business loan until your business is established–a bit of a catch 22 situation. Once your business is up and running and you are thinking of expanding, then a business loan may suit your needs better.

Covenant 113

Covenant Due Diligence Social Media Australia 113