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. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Startup Professionals Musings

OCTOBER 10, 2014

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

MARCH 22, 2020

Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

MARCH 9, 2018

Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

APRIL 17, 2013

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

Startup Professionals Musings

NOVEMBER 11, 2015

Many use a convertible loan note that may be converted into equity upon the closing of the first formal Angel or VC round of financing, with a more realistic valuation. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Rob Go

SEPTEMBER 2, 2014

Some founders are able to skip an institutional seed round and go straight to a multi-million dollar A-round where a larger VC puts in the lion’s share of the capital. As I’ve blogged about in the past, there are positives and negatives to this strategy, but it is a viable option to some founders. Getting Crammed Down.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66