Cram Down Founder Marketing Revenue 
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.
Startup Professionals Musings
MARCH 22, 2020
In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”
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Startup Professionals Musings
OCTOBER 10, 2014
In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”
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.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.
Startup Professionals Musings
MARCH 9, 2018
In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”
Startup Professionals Musings
NOVEMBER 11, 2015
In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”
The Next Web
SEPTEMBER 29, 2013
The two most important considerations are team dynamics and where you fit in the market. Weaknesses inside the founder team kill startups. The truth is, sometimes you need to replace your co-founders and start over. You’re basically tinkering with everything at this stage – product, marketing, sales, partnerships, etc.
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