article thumbnail

6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. New money from professional investors sees no value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

article thumbnail

The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. New money from professional investors sees no value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Cram Down 148
Insiders

Sign Up for our Newsletter

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

article thumbnail

Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. New money from professional investors sees lesser value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Founder 254
article thumbnail

Don’t Hurt Friends and Family Investors Who Love You

Startup Professionals Musings

Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. New money from professional investors sees lesser value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Cram Down 230
article thumbnail

How To Take Money From Friends And Still Be Friends

Startup Professionals Musings

Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. New money from professional investors sees lesser value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Cram Down 120
article thumbnail

Lean Startups aren't Cheap Startups

Steve Blank

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) I see a lot of early-stage entrepreneurs waste too much time chasing money rather than figuring this out first.

Lean 244