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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

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. His work on VC and small communities can be found at greatercolorado.vc/blog. Of the Inc. 5000 companies, only 6.5%

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Your need for a board grows with complexity.

Berkonomics

Then along comes either money or contracts from strategic or financial investors or partners. Bank loans with restrictive covenants are taken on. The operations of the corporation become more complex. Ownership is spread among several classes of investors. The number of employees grows.

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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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The need for a board grows with complexity

Berkonomics

Then along comes either money or contracts from strategic or financial investors or partners. Bank loans with restrictive covenants are taken on. The operations of the corporation become more complex. Ownership is spread among several classes of investors. The number of employees grows.

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The Community Comeback: 14 Ways Local Leaders Are Reshaping America

YoungUpstarts

It’s important for a community to know where its revenue comes from and, more importantly, know what isn’t generating revenue. Pensacola used a Covenant for the Community to guarantee that contractors would use local minorities in the revitalization of downtown. Businesses will want to come anyway.

America 100
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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

The most poignant of these challenges was the quest for capital partners, which was not just about securing capital but about finding collaborators who were willing to believe in the vision and commit to the long-term journey. Are there new revenue streams you can tap into? Are there inefficiencies that you can iron out?