Cram Down – A Test of Character for VCs and Founders
Steve Blank
APRIL 26, 2022
For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round. You just failed the ethical choice and forever ruined your reputation.
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