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. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. The term “seed financing” refers to the stage of funding that comes from first equity.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Rob Go

DECEMBER 28, 2011

And that’s true pretty much across the board – from exits, late stage financings, scaling companies, and seed activity. 61M in Q3 revenue, up 28% YoY. The company is expected to do around $500M in revenue in 2011 and has seen 50%+ growth YoY the past two years. Tripadvisor: An amazing entrepreneurial story.

Technical Review 54

Technical Review Boston Software Review IPO 54

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

David Teten

SEPTEMBER 5, 2014

Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy. For example, if you’re an early stage company dealing with complex regulation (think Uber in transportation, Oscar in healthcare, LendingClub in finance), we have people who can help.

New York 114

New York Technical Review Networking Advisory Board 114

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

Steve Blank

APRIL 26, 2022

For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round. Other times it was simply a take-it-or-leave-it, here are the new terms.

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

VC Cafe

NOVEMBER 3, 2010

Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8 In 2009 it boasted revenue of $4.49 KOREA’S POSCO SIGNS AGREEMENT SEEKING ISRAELI R&D.

Israel 79

Israel Bandwidth Framework Forecast 79

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says. Start-up | Mondays. Technology | Thursdays.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Private Equity 255

Private Equity Salary Cofounder Equity 255

Startup Professionals Musings

SEPTEMBER 1, 2019

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Startup Professionals Musings

NOVEMBER 3, 2013

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240

The Startup Magazine

SEPTEMBER 23, 2021

The $130 million Series D investment round was co-led by New York-based global private equity and venture capital firm Insight Partners and Hanaco Venture Capital. The investment round also featured participation from existing investors Goldman Sachs Asset Management, Clal Tech, Harel Insurance and Finance, and Greycroft.

Private Equity 167

Private Equity Developer Venture Capital Merger 167

The Startup Magazine

SEPTEMBER 10, 2020

Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. It also offers debt financing to middle-market companies making anywhere from $150 million to $1.5 Main Street Capital.

Dividend 97

Dividend Stock Finance Private Equity 97

Startup Lessons Learned

MAY 25, 2020

And then from there, I was running a fitness company on the west coast by the name of 24 Hour Fitness, which was private equity backed and quite a bit of debt. I think about this in customers and protecting your employees and customers, always protect your P&L, your revenue. So, how are you investing in being even better?

Technical Review 148

Technical Review Balance Sheet Texas Austin 148

YoungUpstarts

SEPTEMBER 12, 2011

The findings come from the initial results of a survey of 7,502 small privately-held businesses with revenues of less than US$5 million dollars by the Pepperdine Private Capital Markets Project with the cooperation of Dun & Bradstreet Credibility Corp. were successful.

Small Business 145

Small Business Hiring Private Equity Angel Financing 145

Austin Startup

NOVEMBER 6, 2017

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. However, times are changing. But not all VCs think that way. It requires real financial, tax, legal, etc.

Delaware 48

Delaware LLC Startup Silicon Valley 48

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

You have your general management meeting and in your general management meeting you talk about product development, about marketing and about finance. After that, I did it for a private equity firm then we became a part of a larger corporation. How do you split equity? How do you split revenue? Edwin: I know.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. He worked as an engineer and then went into finance for many years and then was recruited to be president of a biotech company, diagnostics company.

Technical Review 68

Technical Review Software Review Finance San Francisco 68

Growthink Blog

APRIL 3, 2012

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. But you should also avoid other grand claims and bolster your credibility wherever possible. Since achieving such a feat is extremely rare. This video explains more. read more.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

Startup Professionals Musings

SEPTEMBER 13, 2017

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

YoungUpstarts

SEPTEMBER 23, 2019

For tax and finance professionals, managing spikes in demand – and making sure that seasonal business cash flow remains stable – is a year-round exercise. In the accounting business, your revenue chart basically looks like a hockey stick,” says Ernie Mayhorn, owner of Capital Tax Solutions in Carson City, Nev.,

Hockey Stick 113

Hockey Stick Small Business Private Equity Denver 113

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)?

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

The Startup Lawyer

AUGUST 22, 2011

Here’s a list of the top 5 deal terms that cause harm to startups at the seed financing stage and therefore should be avoided: 5. This is something you might see in a late stage private equity financing with a company that has a history of generating revenue. What a deal — for the investor.

Angel Investor 99

Angel Investor Dividend Dilution Cofounder 99

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Startup Professionals Musings

APRIL 15, 2016

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 120

Entrepreneur Private Equity Salary Cofounder 120

Startup Professionals Musings

FEBRUARY 4, 2015

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

Hearpreneur

JUNE 19, 2018

As a successful young entrepreneur (he’s only 30! ), Harrison Rogers is Founder and CEO of HJR Global, a private equity company that has increased at least 200% every year for the past 4 years. Give yourself the time necessary to analyze and decide if the increased revenue is worth the increased costs.

Private Equity 88

Private Equity Entrepreneur Global America 88

YoungUpstarts

MAY 29, 2019

As Kabbage customers explain, managing seasonal impact on revenue requires preparation – and if possible, alternate ways to bring money in the door. To bring in more revenue year-round, Jason recently launched three new delivery-only businesses, selling meat dishes, burgers and grain bowls.

Georgia 113

Georgia New Jersey Private Equity Atlanta 113

ReadWriteStart

APRIL 1, 2020

Such businesses will likely emerge as leaders that will help prepare for the “next big issue” due to their flash-in-the-pan revenues and quick notoriety. And, if a founder is seeking investor financing , the probability of investor funding is significantly lower and investors become much more pitch-picky.

Startup 120

Startup SEO Private Equity Venture Capital 120

Growthink Blog

MAY 10, 2012

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

This is going to be BIG.

MARCH 16, 2020

Some key existings who didn’t want to see their prior money get lost wouldn’t budge on a dilutive financing, despite the fact that they knew where we were headed. If you are a turnaround, bankruptcy or private equity investor and have questions about the sale process, you can e-mail me at charlie@brooklynbridge.vc.

Bankruptcy 98

Bankruptcy Private Equity Seed Stage Dilution 98