Most founders who are raising capital look first to traditional equity VCs. But should they? Or should they look to one of the new wave of Revenue-Based Finance VCs, or other Flexible VCs? Revenue-Based Finance (“RBI” or “RBF”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. RBF...
[Continue Reading]Should your new VC fund use Revenue-Based Finance?
You’re working on launching a new VC fund; congratulations! 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...
[Continue Reading]Why are Alternative VCs investing in so many women & underrepresented founders?
A new wave of Alternative VCs are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Many are reporting that they’re seeing a more diverse pool of applicants than traditional equity VCs… even though virtually none have a particular focus on...
[Continue Reading]Who are the major Revenue-Based Investing VCs?
So you’re interested in raising capital from a Revenue-Based Finance VC. Which VCs should you approach? A new wave of Revenue-Based Investors (“RBF” or “RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for close to...
[Continue Reading]Revenue-Based Finance: A new option for founders who care about control
This essay is part of a series on alternative VC: I: Revenue-Based Finance: a new option for founders who care about control II: Who are the major Revenue-Based Finance VCs? III: Why are Alternative VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Finance? V: Should you...
[Continue Reading]In Venture Capital, Should You Be a Momentum or a Value Investor?
Jeff Bezos once asked Warren Buffett: “Your investment thesis is so simple. You’re the second richest guy in the world, and it’s so simple. Why doesn’t everyone just copy you?” Warren Buffett responded, “Because nobody wants to get rich slow.” That’s certainly true in VC. Which leads me to ask: as a venture capitalist, should you...
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