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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. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5% return cap.

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How and Why To Be an Angel Investor

David Teten

Based on his track record, by 2008 he was able to found ff Venture Capital , an institutional angel investment firm (where I am a Partner). Average Angel Returns Over Time. Time Period. Total Investments. Exited Investments. 1994 – present. Band of Angels Website FAQ. Sohl: “The Angel Investor Market in 2011: The Recovery Continues”.

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Valuing Startup Employee Options

David Teten

While working on my most recent startup, Navon Partners , we were fortunate to have Raul Trevino , a star former Citi investment banker and Columbia MBA, interning with us. Projections were based on dozens of operational assumptions related to pricing, production, marketing spend, etc. Participa.me

Employee 155
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The Venture Spiral

K9 Ventures

The General Partners (GPs) are the operating guys. The money that the GPs and other employees of the firm invest comes from Limited Partners (LPs) — typically the big university endowments, retirement funds, charitable organizations, family offices and high net-worth individuals. of the size of the fund.

IRR 48
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The Venture Capital Shakeout

Andrew Payne

For too long, venture’s been over-funded and over-staffed with homogeneity: the same kinds of partners, operating with the same fund model, looking at the same investments, in the same markets. The venture capital business is in the middle of a shakeout.

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A trial balloon: How large corporates can coinvest with their employees’ angel investing

David Teten

Angel investing is an exceptionally high-return asset class; I have collected twelve studies on angel returns in the US and UK, which show median internal rate of return (IRR) between 18 and 38 percent. My proposed model looks a bit like the way many VC funds operate internally, except with far more Partners than normal.

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Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Keith Harrington, Co-Founder & Managing Director at Novel Growth Partners, writes, “RBI may not work for a company with a super high growth trajectory, because the payments could be very large”. .

Revenue 60