Ask HN: What are some ways to structure equity repurchase as a VC round?
I am raising some money from a VC and want to know how to best structure an equity-buyback/repurchase structure, as a way to repay the VC fund the ROI that they are looking for, such that the structure accounts for changes in YOY Revenue growth over the course of 5 years.
I am also looking to understand how to structure it in such a way as to potentially have some form of discount for us on the equity repurchase, if our revenues exceed our projections.
I have calculated a CAGR to get the VC the return they want, and have projected out revenues that are realistic over 5 years, but are prone to some potential swings.
Does anyone have equity-buyback/repurchase term sheets that they could share with me and the community to help me understand this better or ideas to help me form a model?
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