Author Archives: The Venture Hype Team

* This is not legal advice. Consult with your lawyer. In our previous article, you were introduced to Regulation D and Private Placement Memorandum (PPM) and you learned whether a PPM is required in all investment deals. Let’s continue the series with our fictitious company called Yo!Woo, Annice (an accredited investor), and David (a non-accredited [...]

* This is not legal advice. Consult with your lawyer. Antoine Brand asks – What is a private placement memorandum? Should Angel Investors be concerned if the company doesn’t have one? Since many an entrepreneur has asked the same question, why don’t we look at both sides of the table and examine the role it [...]

In this final installment of an 8-part series on royalty (or revenue) based investment — an investment vehicle that features “build-in” exits — we’ll report some final thoughts on the model that some investors hate to love while others love to hate. Haven’t read all of the articles in the series yet? Please do. Previously… [...]

This is Part 7 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. You’ve seen 2 exit-dependent investment models used by equity investors and understood why some investors are exploring an investment vehicle, called royalty based investment (or “royalty based financing”), that doesn’t depend on [...]

Now, let’s turn our heads to the fanta-bulous entrepreneurs and find out how they can benefit from royalty based financing. We’ll deal with its downsides later in the series. This is Part 6 of an 8-part series on royalty or revenue-based investment (or “royalty based financing”). Please visit Part 1 for links to the entire [...]

This is Part 5 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. So what are the main features that turn some investors into a huge fan of the royalty based approach? Let’s take a look. (Yes, we’ll go over the drawbacks later in the [...]

This is Part 4 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. “Startup funding is hooked on exits,” says Thomas Thurston, president of Growth Science International. Thurston is right. Equity investors are “exit junkies.” Exits are how they make money. But in the aftermath [...]

TechCrunch blogger Mike Arrington recently accused a group of Silicon Valley super angels for colluding to drive down valuations of startups. Missed it? Here’s a summary of the controversy, dubbed “AngelGate,” that’s created quite a stir in the startup and venture community. Mission AngelGate: Bin 38 Secret Meeting 9.21.2010 It all started when Arrington barged [...]

This is Part 3 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. By now, you should’ve learned about the 2 exit-dependent investment models used by equity investors; understood why some investors are exploring a new investment vehicle that doesn’t depend on exits; and looked [...]

Image by: boo!berry   Sophisticated angel investors strongly favor equity over debt. We already know that. * This is Part 2 of an 8-part series on royalty or revenue-based investment. Please visit Part 1 for links to the entire series. These angels are predominantly equity investors who live by the exit-dependent investment models. No exits, [...]

 

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