Keith Harrington of Novel Growth Partners and Founder, RBFNetwork, is hosting an interview with me February 23rd at 1pm ET. We’ll talk about revenue-based investing and other alternative investment approaches, and my recent work with Jamie Finney and Jonathan Bragdon about the concept of Flexible VC and how and when that approach works.
If this was helpful to you, please sign up for my newsletter.
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?
V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC?
VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020.
VII: Flexible VC, a New Model for Companies Targeting Profitability
VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing
Of the Inc. 5000 companies, only 6.5% raised money from VCs and 7.7% raised from angels. Where else can fast-growing companies get funding?
More and more startups are pursuing Revenue-Based VCs, but “RBI” doesn’t fit everyone. A new category of VCs have emerged offering a hybrid between VC and RBI, which we call “Flexible VC”.
From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth (Read more...)