Learn The venture model is simple - Deepstash

Learn The venture model is simple

Investors put in cash in exchange for a cut of the payout when the company is acquired or goes public. Since venture investors get nothing until the exit, no surprise that’s their only goal. And since startups are valued by revenues and revenue growth rates, accepting venture investor money is a promise to focus exclusively on explosive revenue growth.

This venture model works well because your interests are aligned with theirs — the senior team gets paid mostly in equity. 

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