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On the Road to Recap:

abovethecrowd.com

In 1999, record valuations coexisted with record IPOs and shareholder liquidity. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one. This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike).

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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

I can’t say his name yet because he hasn’t announced funding. On the positive side, corporate profits are up, their balance sheets have been repaired and they have recapitalized themselves to have lower amounts of debt relative to equity. Don’t spend like it’s 1999. After that, all bets are off.&#

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