Both Sides of the Table

APRIL 20, 2011

As a courtesy if you enjoyed his write-up please check out his startup company, ChannelStack. He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. CEO Network – CEO’s from the portfolio companies are introduced to each other. They follow on when milestones are met.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Rob Go

SEPTEMBER 2, 2014

I’ve seen a few cases now where a number of very high-quality institutional investors were interested in investing in a company at valuation, but a non-institutional investor was willing to set terms 1.5 – 2X higher than that valuation. Getting Crammed Down. The institutions walked, but the round got done.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

Rob Go

MAY 21, 2014

Network effect businesses. Care.com is a classic network effects business. The more and better the caregivers in the network, but more valuable it is for consumers. Care just went public, is an $80M+ revenue business, and has a multi-hundred million dollar market cap (not a vapor private valuation). eCommerce.

Boston 57

Boston Cram Down Indiana eCommerce 57

Tim Keane

AUGUST 20, 2009

Startups and angels: Along the way to success. "  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.    And it is unarguably what has driven valuation bubbles in the past.  

Milwaukee 60

Milwaukee Bootstrapping Cram Down Deal Structure 60