Pay to Play Recapitalization Reputation 
Steve Blank
APRIL 26, 2022
For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. You just failed the ethical choice and forever ruined your reputation. Other times it was simply a take-it-or-leave-it, here are the new terms. You start rationalizing why this is good for everyone.
Feld Thoughts
JULY 14, 2015
So they recapitalize the company. It usually happens in a later round, when the company is in fact worth much less than the liquidation preference overhang and insiders use a pay-to-play and a low valuation to reset the preferences and the cap table. And developing a reputation for recapping seed rounds is, in my book, silly.
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