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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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Cram Down – A Test of Character for VCs and Founders

Steve Blank

Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. While cram downs never went away, the flood of capital in the last decade meant that most companies could raise another round. Why do VCs Do This?

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Typical business stage. Typical business model.

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

philipsmith.typepad.com

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. Marketing on a Shoestring.