article thumbnail

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

YoungUpstarts

If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. This is like taking a magnifying glass to each cash flow in and out and ensuring week-to-week survival. Maintaining a 13-week cash forecast is time-intensive but essential to avoiding critical errors when cash is tight.

article thumbnail

Mark Hauser’s Hauser Private Equity Spearheads Major Deals in Industrial Sector

The Startup Magazine

Their investment supported Stat Health’s recapitalization, alongside Spanos Barber Jesse & Co.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

But then there’s one more thing – to make it easier for you and a few key employees to swallow the cram down – they promise that you’ll get made whole again (by issuing you new stock) in the newly recapitalized company. All of a sudden the deal which seemed unpalatable is now sounding reasonable.

Cram Down 404
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Their only option is to work with management to try to fix the problems. Few strings attached : Founders have autonomy to spend the funds in whatever way they like.

article thumbnail

What Just Happened With OnLive?

Feld Thoughts

Rather than shut down, they found a buyer / investor (which could be a subset of the existing investors) who would recapitalize the company and keep it going as long as he didn’t inherit the liabilities. Hence, the ABC process.

article thumbnail

The Right Way to Lay People Off

Ben's Blog

outcome with no recapitalization. Shortly after we sold Opsware to Hewlett-Packard, I had a conversation with the legendary venture capitalist Doug Leone of Sequoia Capital. He wanted to hear the story of how we went from doomed in the eyes of the world to a $1.6B

article thumbnail

Startup Financial Models: Best Practices in Spreadsheet Design

David Teten

A good model should have the ability to test assumptions in order to analyze the impact on future financial performance, including growth rates, operating margins, product lines/individual segments, and refinancings/recapitalizations. The purpose of the model should directly influence how you think about its design and functionality.

Design 144