Both Sides of the Table

MAY 5, 2013

. “Whenever I hear advice about pricing a round too high for the next round, I can’t help but think: well, if the choice (ceteris paribus) is between. I would love it if other people would weigh in on the comments section below if you’ve had experiences with down rounds. A down round.

Down Round 302

Down Round Cram Down Valuation Reputation 302

Growthink Blog

MAY 23, 2011

Management has the wrong pedigree, is geographically undesirable, competes in the wrong industry, and/or has a business model that lacks "scalability credibility" with the venture community. . There are a lot of dark, hard days. There is considerable internal debate around whether or not to solicit and/or accept outside venture capital.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Lean Startups aren’t Cheap Startups « Steve Blank (tags: startup product-management strategy) [.]

Lean 257

Lean Silicon Valley Startup RSS 257

Tim Keane

AUGUST 20, 2009

"  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors.    New money, usually VC money, comes in and crams down those early investors and takes substantial shares from the entrepreneur. 

Milwaukee 60

Milwaukee Bootstrapping Cram Down Deal Structure 60