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Launchpad LA – More Details Revealed

Both Sides of the Table

He had a pile of debt and covenants that made him vulnerable if the debt holders wanted to play rough. It was inspired somewhat by a comment that Matt Coffin (founder of LowerMyBills) made at a technology event hosted by Jason Nazar. I’m excited.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

But the biggest thing to know is this: Companies who are scaling quickly in revenue and with a high gross margin often should invest as much capital in growth as they can manage responsibly because when you find a product / market fit and your company is growing at a very fast scale you want to capture market share before competition sets in.

Burn Rate 383
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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. Governance.

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

Tim Keane

  Appropriate covenants.   Appropriate covenants. Managing Company Growth. Possibilities: 1.    If plenty of cash flow regardless of plan for sale/retention of business: Senior bank debt based on cash flow coverage and new assets.  Maybe Small Business Administration guaranteed loan. September 2011.

Finance 83
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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. 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. Alternative Capital. “

Revenue 60
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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

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. All of these items are postponed until the elusive priced equity round. It’s going to be great!”.

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Liquidity for Venture Backed Companies Still Comes Largely in One Flavor—Cash Acquisitions

Pascal's View

It is critical to know the state of the art in merger terms leading to an acquisition and in post-merger covenants, particularly with respect to the release of cash consideration held in escrow or as a holdback by the buyer.