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. Stopping Cram Downs.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Startup Professionals Musings

MARCH 22, 2020

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. 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.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

MARCH 9, 2018

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. 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.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. 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.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

NOVEMBER 11, 2015

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. 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.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Rob Go

SEPTEMBER 2, 2014

With the advent of more open, standard financing documents, it’s also more possible for founders to just set terms themselves and have investors subscribe. Related to 3, the potential to fill out rounds gets easier and easier with the rise of alternative financing sources like Angelist, FundersClub, and others.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

The Next Web

SEPTEMBER 29, 2013

You’re basically tinkering with everything at this stage – product, marketing, sales, partnerships, etc. It should never be the financing event that dictates whether to shift or not. With the lower evaluation, all the initial investors and the founders will be crammed down and lose a good portion of their equity.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136