Remove Burn Rate Remove Recapitalization Remove Reputation Remove Technology
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Cram Down ā€“ A Test of Character for VCs and Founders

Steve Blank

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. You just failed the ethical choice and forever ruined your reputation. This article previously appeared in TechCrunch. Cram downs are back ā€“ and Iā€™m keeping a list.

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On the Road to Recap:

abovethecrowd.com

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In Q1 of 2016 there were zero VC-backed technology IPOs.

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