Remove Cram Down Remove Finance Remove Reputation Remove Startup
article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

Cram downs are back – and I’m keeping a list. At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies.

Cram Down 408
article thumbnail

Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. 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. My suggestions for the investors seeking emerging companies to back?