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Cram Down – A Test of Character for VCs and Founders

Steve Blank

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.

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Lean Startups aren't Cheap Startups

Steve Blank

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. Over its lifetime a Lean Startup may spend less money than a traditional startup. Lets see why.

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6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

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.

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Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

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.

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The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

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.

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How To Take Money From Friends And Still Be Friends

Startup Professionals Musings

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.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. 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.