David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5% return cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

AUGUST 19, 2019

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. In 2019 we partnered with several revenue-based lending providers, effectively creating a marketplace. “. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US.

Revenue 60

Revenue Technical Review Software Review Equity 60

Berkonomics

AUGUST 24, 2023

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. In a number of cases, these VC partners have made the difference between success and failure or at least growth vs. stagnation. This statement could be considered controversial.

Covenant 118

Covenant Angel Investor Valuation Later Stage 118

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

Berkonomics

FEBRUARY 8, 2018

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. In a number of cases, these VC partners have made the difference between success and failure or at least growth vs. stagnation. This statement could be considered controversial.

Covenant 97

Covenant Angel Investor Valuation Later Stage 97

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

Berkonomics

AUGUST 21, 2013

Venture or angel-financed companies with plenty of working capital sometimes are immune to this 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.

Covenant 61

Covenant Warrant Dilution Intellectual Property 61