Steve Blank

APRIL 26, 2022

Cram downs are back – and I’m keeping a list. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. They’re Back.

Cram Down 408

Cram Down Founder Venture Capital Recapitalization 408

Startup Professionals Musings

MARCH 22, 2020

Loans are a safer option than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Pay the money back, with thanks, as quickly as you can. Later investors all think you have given away too much of the company too soon.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

MARCH 9, 2018

Loans are a safer option than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Pay the money back, with thanks, as quickly as you can. Later investors all think you have given away too much of the company too soon.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Loans are a safer option than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Pay the money back, with thanks, as quickly as you can. Later investors all think you have given away too much of the company too soon.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

APRIL 17, 2013

Loans are easier than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. 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

Cram Down Angel Investor Equity Dividend 230

Startup Professionals Musings

NOVEMBER 11, 2015

Loans are a safer option than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Pay the money back, with thanks, as quickly as you can. Later investors all think you have given away too much of the company too soon.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Growthink Blog

MAY 23, 2011

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. My suggestions for the investors seeking emerging companies to back?

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112