Steve Blank

APRIL 26, 2022

Cram downs are back – and I’m keeping a list. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had.

Cram Down 414

Cram Down Founder Venture Capital Recapitalization 414

Startup Professionals Musings

MARCH 22, 2020

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

OCTOBER 10, 2014

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

MARCH 9, 2018

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

NOVEMBER 11, 2015

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Growthink Blog

MAY 23, 2011

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. My suggestions for the investors seeking emerging companies to back?

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

The Next Web

SEPTEMBER 29, 2013

Weaknesses inside the founder team kill startups. The truth is, sometimes you need to replace your co-founders and start over. It should never be the financing event that dictates whether to shift or not. Usually it’s because the founders were doing exactly what they needed to do to raise money. How do you do that?

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136