Trending Sources

The Damaging Psychology of Down Rounds

Both Sides of the Table

I would love it if other people would weigh in on the comments section below if you’ve had experiences with down rounds. A down round.

Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Brian S. Be professional about it.

How To Take Money From Friends And Still Be Friends

Startup Professionals Musings

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Brian S. Be professional about it.

The Biggest Threats to My Business

Rob Go

Getting Crammed Down. If a), you reduce the cram-down risk, but also reduce the fund’s upside because you own less of your portfolio companies to begin with. I think it’s sometimes a good exercise for companies to take a step back and think about the big external threats to their businesses. New Competition.

5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

No VC or Angel investors I know are interested in a bunch of angry, crammed-down small investors as co-shareholders. Funding risk.

Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

This combo all too often leads to various forms of deal unpleasantness, like cram-down rounds, liquidation preferences, and change of control provisions, which in turn, often lead to unhappy founders and angel investors even in somewhat successful exits. All live happily ever after. It all sounds wonderful and it is. read more.

Punt to Fred: Following Through

charliecrystle.com

And a lot will shut down because they didn't focus on revenue. Performance means follow-on round of funding without cramming down founders :) Go read Fred's post and the comments--good stuff Fred has a great post on following through with your promises. Last year I made a long (-winded) list of predictions for 2012.

Does raising money mean you should start scaling?

The Next Web

With the lower evaluation, all the initial investors and the founders will be crammed down and lose a good portion of their equity.

Predictions for 2012

charliecrystle.com

Performance means follow-on round of funding without cramming down founders :) I'll finally ship Jawaya, rename it, and get some decent traction, and I will close a seed round by May. Hey, everybody's doing it, why not me? What follows is absolutely armchair conjecture. Android 4.0 The Nexus is $299 with a contract, only on Verizon.

Want to Know How First Round Capital was Started?

Both Sides of the Table

He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. and Half.com.

Startup Blog: Need Investment? Increase the Chances by Beefing Up.

Taffy Williams

Most likely you will experience a “CRAM DOWN ROUND&# if you get money at all. They do not like the Down Rounds. I Did What?

2012 Predictions: How'd I do?

charliecrystle.com

Performance means follow-on round of funding without cramming down founders :) (Dave? Last year it was fun to make predictions for 2012. Reading back on them, it strikes me what was on my mind that day--mobile phones and service because I was ditching ATT and wanted to try Android for the first time, startups, and venture capital.

The End of Big Ideas?

charliecrystle.com

The mainstream didn't believe it, and the press was skeptical, but it was easy to see that costs would come down, experiences would improve, and there would be more software to serve needs. Gates said in the early 90's there would be a computer in every home, connected to the internet (others said that too). What's next? Of course there is.

Lean Startups aren't Cheap Startups

Steve Blank

Lean Startups aren’t Cheap Startups A Lean Startup is not about the total amount of money you may spend over the life of your startup. Lets see why.

A Year of Reckoning for Angels and Seed Funds

A Crowded Space

We expect there to be an increase in down rounds, flat rounds, inside rounds and various pay-to-play scenarios. These companies shut down. These shut downs are likely to happen when companies are funded solely by seed funds and angel investors that have not reserved significant capital for follow-on investments.

When to Shut Down Your Company

Ask The VC

Last week we started the blog series (written by Roger Glovsky), How to Wind Down Your Company. This week we tackle the hardest problem of all: deciding when to shut down your company. The last thing an entrepreneur wants to do is to shut down his or her dream. So, how do you make the decision to shut down your company?

Weighing In On The Debate Over Standardized Financing Documents

VC Deal Lawyer

recapping, taking out early investors, letting founders take money off the table, wash-outs or cram downs, etc.), Just my two cents.

Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

"  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors.    New money, usually VC money, comes in and crams down those early investors and takes substantial shares from the entrepreneur.  Archives.

Startup Catchphrases and Rules of Thumb

startupengineering

Cram Down : When a new funding round is done at a lower valuation than the previous one, meaning the original investors (or Founders) end up with a much smaller percentage ownership. In his fabulous Thinking, Fast and Slow , Daniel Kahneman clarifies a distinction about the learnability of environments. B players hire C players.

Deal Activity and Valuations in Software and Biotech

Recent Buzzes - VC Experts, Inc.

Full Ratchet can "cram down" the founders, leaving them with less of an equity stake of their own company. million. billion. million.