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“I think CEOs that are interested in a future acquisition need to be building relationships or at least awareness with potential buyers at least 2-3 years in advance, especially with strategics. If you’re not on the list, it’s rare for a deal to happen.” Joe Hyrkin on Selling Issuu to Bending Spoons, and More….

Hunter Walker

By early 2024, we were sustainably profitable for a second time, on track to generate over $30 million in revenue and starting to get some PEs and strategics showing interest in Issuu. HW: Debt financing for startups can sometimes seem like ‘cheap money’ but its definitely more complicated than most founders realize.

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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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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

TEC is one of Canada’s largest and most experienced private credit firms, specializing in providing asset-based capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. Are there new revenue streams you can tap into? The firm has made more than $4.5

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Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

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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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Funding options for growing businesses

Up and Running

As mentioned, debt, particularly term debt, is usually the cheapest form of external financing a company can obtain. Look for the future installment on financing options which will cover the growing area of alternative options to debt and equity. To learn more about revenue-based finance and Lighter Capital, click here.

Equity 82