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. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies.

Cram Down 414

Cram Down Founder Venture Capital Recapitalization 414

Startup Professionals Musings

MARCH 22, 2020

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Tie payments to your product or service revenue.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

MARCH 9, 2018

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Tie payments to your product or service revenue.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Tie payments to your product or service revenue.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

NOVEMBER 11, 2015

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Tie payments to your product or service revenue.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Rob Go

SEPTEMBER 2, 2014

With the advent of more open, standard financing documents, it’s also more possible for founders to just set terms themselves and have investors subscribe. Related to 3, the potential to fill out rounds gets easier and easier with the rise of alternative financing sources like Angelist, FundersClub, and others.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

The Next Web

SEPTEMBER 29, 2013

In startup-land, people seem to think raising money is a signal that their business is sound and they should start scaling as soon as possible. The main challenge, as we’ll discuss below, is that startups need to internalize two conflicting attitudes. Weaknesses inside the founder team kill startups. The wrong reason to spend.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136