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What Do I Do If My Business Runs Out Of Cash?

YoungUpstarts

For example, a rapidly growing business is often purchasing lots of inventory, investing in fixed assets, and not managing their accounts receivable. If your business model is profitable but you’ve mismanaged one of the above categories, you need to build a 13-week cash forecast to manage your short-term crisis.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Too often, investment structures force the management team to make decisions between misaligned growth and investment (return) objectives. Early liquidity.

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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

Finance where needed. I need leaders who manage in good times and bad.To build a large company you need to manage through economic cycles. On the positive side, corporate profits are up, their balance sheets have been repaired and they have recapitalized themselves to have lower amounts of debt relative to equity.

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Silicon Valley Frontlines: Two Tales of "Working For Equity"

philipsmith.typepad.com

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. Posted by Philip Smith on January 23, 2010 at 02:55 PM in Business Management , Fundraising , Getting going. , Business Management. Save to del.icio.us. |.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company. A company raises $1m of seed money from angels in a convertible note with a $6m cap. It’s not pretty, but it happens.

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On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. By the first quarter of 2016, the late-stage financing market had changed materially. This is uncharted territory.

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