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

Tim Keane

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
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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.

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Who are the Major Revenue-Based Investing VCs?

David Teten

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
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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

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.

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Have you done your annual entrepreneurial health check?

NZ Entrepreneur

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.

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Take only “smart money” investments

Berkonomics

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
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Take only “smart money” investments

Berkonomics

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. This statement could be considered controversial. Now we explore the other side of that coin.