Business Model Down Round Pay to Play Valuation 
Steve Blank
APRIL 26, 2022
Cram downs are back – and I’m keeping a list. 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. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose.
Both Sides of the Table
FEBRUARY 14, 2016
Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. I have been talking about my concerns about valuations for the past couple of years because, well, they’ve been rising very rapidly the past two years!
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