David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

David Teten

JANUARY 19, 2021

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. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

MARCH 9, 2011

If, on the other hand, there is some near term prospect of cash flow (say within six months or a year) but no ability to repay in the meantime, then the entrepreneur may try and find a way to finance his “pre-revenue period” using friends and family money that accepts a somewhat lower payment in recognition of a relationship beyond just investing.

Finance 83

Finance Bootstrapping Startup Equity 83

Lightspeed Venture Partners

DECEMBER 10, 2012

Revenue is driven by children’s parties, which cost $600-$4,000 for a two hour party for 15 kids, which apparently is the market price for kids parties in LA. The space can host 6-9 parties per weekend, and they generated $350,000 in revenue last year. To build the Coop the two founders took a $125,000 small business loan.

Covenant 162

Covenant Warrant Southern California Los Angeles 162

Berkonomics

JANUARY 24, 2013

For small businesses, there is such truth in that statement that you can trust the story to be based in reality from experience. There are great exceptions for growing businesses and for businesses that have a track record with a banker.

Covenant 66

Covenant Revenue Operations Small Business 66

Berkonomics

DECEMBER 12, 2019

For small businesses, there is such truth in that statement that you can trust the story to be based as fact from experience. There are great exceptions for growing businesses and for businesses that have a track record with a banker. The warning is real. Exceptions and good reasons to work on them.

Covenant 62

Covenant Revenue Naming Operations 62

Up and Running

MAY 21, 2015

When small business owners talk about taking on an additional investor, they typically say something nondescript like, “We’re taking on an angel investor.” What this means, is that he gets paid not as a portion of the profit, but as a portion of the overall revenue, regardless of the profit. Structure of the investment.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60