YoungUpstarts

APRIL 16, 2020

If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. See if you and your finance staff can answer these questions: When did my business become unprofitable, and what caused the change? Furlough non-essential employees. What are my top 3 costs?

Recapitalization 200

Recapitalization Forecast Software Review Finance 200

Steve Blank

APRIL 26, 2022

They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. Founders rationalize it’s good for their employees.

Cram Down 412

Cram Down Founder Venture Capital Recapitalization 412

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

venturehacks.com

MARCH 21, 2008

Or they bring you a handful of great employees. They’ll bring you leads for customers, employees, and investors. The company is acquired, recapitalized, or otherwise restructured and the advisors are no longer useful or desired. Super advisors help make your company happen. Or they raise your money for you.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

blog.simeonov.com

FEBRUARY 22, 2010

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) However, founder agreements are not set in stone and it is common for them to be tweaked by a little or a lot during the first financing by professional investors. Which founder agreement? more details ].

Founder 44

Founder Vesting Agile Startup 44