How to Launch Your Startup With Revenue-Based Financing
Yes, revenue-based financing can be used to finance startups. In fact it’s been used for many decades by sophisticated entrepreneurs and investors. The thing is that a lot of noobs are only now discovering it and acting like it’s something new. It’s not. Far from it. Continue reading
The Great Gaping Valuations Chasm Between Entrepreneur and Investor
Revenue-based Funding.
I first started working with startups back in the late 1980s and can guarantee you that the one problem that never goes away is the Grand Canyon-like chasm between the entrepreneur’s and investor’s respective valuations. Without getting bogged down with unnecessary detail, it usually breaks down like this. Whether the first-time capital seeker is looking for $50,000, $500,000, or $5,000,000, they always seem to settle around the magic 20% mark. That is they convince themselves that their startup is worth so much that whatever the amount being sought is, it should only require the surrender of 20% of the total equity. Fair is fair, right? Continue reading
James Spader demonstrates how closers do it while applying for Michael Scott’s vacated position at Dunder-Mifflin.
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