Demand IRR Revenue 
David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC: Revenue -based. Gross Revenues (generally 2-8%).
Steve Blank
MARCH 4, 2014
It describes the product/service, who is it for, what channel sells/deliver it, how demand is created, how does the company make money, etc. Sales teams are commission-based, executive compensation is based on EPS, revenue and margin, business units on revenue and margin contribution, etc. What Does this Mean?
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Steve Blank
JUNE 11, 2013
The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? What are revenue strategy and pricing tactics? In a perfect world, you would never need investors and would fund the company from customer revenue. What is an IRR?
Startup Professionals Musings
JUNE 13, 2020
VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Both angel and VC investors are looking for solutions that scale easily (product versus service businesses), and both expect revenue growth that can reach the $20M mark by year five.
Tim Keane
JANUARY 12, 2010
If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR. Internal Rates of Return naturally compound, so a 50% IRR is 7.59 (If you plug in an IRR of 58.5% Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39
Startup Professionals Musings
AUGUST 2, 2014
VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Both Angel and VC investors are looking for solutions that scale easily (product versus service businesses), and both expect revenue growth that can reach the $20M mark by year five.
Startup Professionals Musings
MARCH 12, 2023
VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Both angel and VC investors are looking for solutions that scale easily (product versus service businesses), and both expect revenue growth that can reach the $20M mark by year five.
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