David Teten

JANUARY 19, 2021

As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Too often, investment structures force the management team to make decisions between misaligned growth and investment (return) objectives. Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? Misaligned interests that lead to poor financing choices are often very problematic for first time entrepreneurs in young companies.    Appropriate covenants. Possibilities: 1. 

Finance 83

Finance Bootstrapping Startup Equity 83

Berkonomics

AUGUST 24, 2023

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. So now, in this series of insights, we have explored the early stages of formation and finance. This statement could be considered controversial. Now we explore the other side of that coin.

Covenant 118

Covenant Angel Investor Valuation Later Stage 118

David Teten

AUGUST 19, 2019

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US. Alternative Capital. “ You qualify if you have $5k+ MRR. Key elements: . “We

Revenue 60

Revenue Technical Review Software Review Equity 60

NZ Entrepreneur

FEBRUARY 17, 2019

This might be in the form of multiple overdraft extension requests for new funding lines, such as equipment finance or term debt. Breaching facility limits and covenants – this can take the form of a company breaching its overdraft facilities with multiple excesses each month. Staff/Management.

New Zealand 42

New Zealand Covenant Forecast Government 42

Berkonomics

JULY 16, 2020

Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise. Read the loan covenants carefully. It may not be equity.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

Pascal's View

JULY 9, 2017

When it comes time to convert the notes, these entrepreneurs face ‘sticker shock’ about their post-financing ownership. The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49