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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. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. A cram down is different than a down round. Cram downs wouldn’t exist without the founder’s agreement. Stopping Cram Downs.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

One example is that they introduced a program where their founders can pool together shares from their company and exchange them for a small portfolio of other First Round Capital companies. In the early 80’s he left academia to work on venture capital investing with Jim Simons, Renaissance Technologies. and Half.com.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days. Venture capitalists Cut Tough Deals.

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5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

Within the venture community, the first rule to remember is that opportunities abound these days, due to the increasing pace of technology evolution, and the scope and creativity of the global community. No VC or Angel investors I know are interested in a bunch of angry, crammed-down small investors as co-shareholders.

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