Remove Covenant Remove Operations Remove Technical Review
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins). .”

Burn Rate 383
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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. Investment Criteria: B2B SaaS or tech-enabled services with proven, recurring contracts. We have reviewed the application process of other RBI lenders and have not found one that has more API connections that ours.

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

David Teten

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . Technology-centric businesses.

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

Tim Keane

But, this should lead to a thorough, well-planned review of bootstrapping alternatives, since bootstrapping can reduce cash requirements in the pre-cash flow phase. Example one: Sustainable net operating income with some growth in a stable market.    Appropriate covenants.  and won’t repeat it all here.

Finance 83
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Have you done your annual entrepreneurial health check?

NZ Entrepreneur

This means it’s even more important that Boards and owner-operators conduct regular health checks on their business to ensure their operations have a solid foundation. Breaching facility limits and covenants – this can take the form of a company breaching its overdraft facilities with multiple excesses each month.

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One More Time: No NDAs

dashes.com

Its great that were in such a fertile phase for the tech industry that lots of people have new ideas, and Im very flattered that people value my input or ideas enough to want to share their projects with me. I have to pay a lawyer to review a document without having any idea why Im making that investment. But signing an NDA ?

NDA 52
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Why Crunch Modes Doesn't Work: Six Lessons

www.igda.org

Electronic Arts is no different than many high-tech companies in this regard. Useful measures like number of bugs created and number of bugs fixed are viewed with suspicion that they will be used unfairly in annual reviews (or gamed by clever programmers in anticipation of annual reviews or performance bonuses).