Both Sides of the Table

APRIL 20, 2011

He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. CEO Network – CEO’s from the portfolio companies are introduced to each other. The Exchange Fund – This allows the entrepreneurs to diversify their founders stock into other portfolio companies stock.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Rob Go

SEPTEMBER 2, 2014

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. Sure, there is some brand benefit and network effect as you become known for investing in great companies. But those are short lived.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Tim Keane

AUGUST 20, 2009

Who the entrepreneur takes money from (see this post ) is always more important than the terms. "  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.    If the entrepreneur can bootstrap.

Milwaukee 60

Milwaukee Bootstrapping Cram Down Deal Structure 60