philipsmith.typepad.com

SEPTEMBER 24, 2011

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. Name and email address are required. Name is required to post a comment. The second example came along just this morning. URLs automatically linked.).

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

abovethecrowd.com

APRIL 20, 2016

This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike). They basically cannot afford to expose themselves to any more risk in a particular name.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

APRIL 28, 2010

The reason you dont want to give them up is the following scenario.The VCs recapitalize the company, meaning they give it additionalfunding at a pre-money valuation of zero. It doesnt happen often.Brand-name VCs wouldnt recapitalize a company just to steal a fewpercent from an angel. Then its up to themto tell VCs early on.

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Both Sides of the Table

AUGUST 9, 2011

I can’t say his name yet because he hasn’t announced funding. 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. I told him (verbatim), “close your round by August 2nd. But he got it done.

Stock 305

Stock Technical Review Marketing Greece 305