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. Conversely, you may be able to save money by bringing in marketing, bookkeeping, or warehousing. This is like taking a magnifying glass to each cash flow in and out and ensuring week-to-week survival.

article thumbnail

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

The Startup Magazine

However, sound investors would do well to remember that although their prevalence has certainly made these industries a popular topic of conversation, they are by no means the only viable option for significant returns. 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

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Flexible VC: Compensation-based. 2-5x return cap + path to uncapped equity returns.

article thumbnail

The Right Way to Lay People Off

Ben's Blog

Shortly after we sold Opsware to Hewlett-Packard, I had a conversation with the legendary venture capitalist Doug Leone of Sequoia Capital. outcome with no recapitalization. “I’m tryin’ to right my wrongs, But it’s funny them same wrongs helped me write this song”. Kanye West.

article thumbnail

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

philipsmith.typepad.com

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. You can follow this conversation by subscribing to the comment feed for this post. The second example came along just this morning. Save to del.icio.us. |.

article thumbnail

Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

If an advisor can uncork a million dollars of your company’s latent value with 15 minutes of conversation or a single introduction, you should pay him appropriately. The company is acquired, recapitalized, or otherwise restructured and the advisors are no longer useful or desired. Normal advisors The normal advisor gets 0.1%-0.25%

article thumbnail

Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

Maybe he’ll reveal our conversation when he announced. 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. But the internal conversation started today – trust me. August 2011.

Stock 305