The Pros and Cons of Filing Business Bankruptcy

The Startup Magazine

Chapter 13 can be used by sole proprietors, one-person corporations, and certain LLCs in some states to repay some debt, “cram down” any assets that are subject to loans and otherwise reorganize their business under a three- to five- year repayment plan.

The Damaging Psychology of Down Rounds

Both Sides of the Table

a) doing what is effectively a down round preemptively when I don’t have to, by underpricing my current round in this market vs. b) accepting the market price along with some risk of taking a down round in the future, if I don’t hit my milestones, why would I ever choose b)?”

The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

That means writing down and signing the terms of the agreement, after making sure everyone understands them. 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.

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. 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.

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. 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.

5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

The single most important ingredient of success is not the idea, but having a team in place that has impeccable integrity, can iterate the product quickly, pivot the business model as necessary, and keep costs down in the process. People with money to invest have choices.

Don’t Hurt Friends and Family Investors Who Love You

Startup Professionals Musings

That means writing down and signing the terms of the agreement, after making sure everyone understands them. 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.

Want to Know How First Round Capital was Started?

Both Sides of the Table

They chose the name First Round Capital because they thought capital would be deployed most efficiently at smaller seed stage rounds considering the cost to build an internet business had come down drastically. If you read this blog often you'll know that I'm a huge fan of First Round Capital.

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. This forces some level of intellectual honestly about one’s position in the market, and can push you to try to see around corners and respond.

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. The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1.

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.)

Lean 184

Does raising money mean you should start scaling?

The Next Web

Sometimes you’ll see that the lifetime value of your customers has gone way down because now you’re doing volume you’ve harvested all your ‘ideal’ early adopters. With the lower evaluation, all the initial investors and the founders will be crammed down and lose a good portion of their equity.

Nobody Gets Consumer in Boston

Rob Go

But overall, I think there is one major issue at work, and it does come down to the culture and high-brow intellectualism of this market. Angels don’t want to look stupid by having the large number of losses required to catch winners, or get crammed down by VCs investing big dollars ahead of them. VC’s don’t want to look stupid by investing in things too early, or trying to use capital as a weapon only to go down in flames.

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.    New money, usually VC money, comes in and crams down those early investors and takes substantial shares from the entrepreneur.