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Cram Down – A Test of Character for VCs and Founders

Steve Blank

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.

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Founders Finding Funding From Friends May Be Fools

Startup Professionals Musings

Some founders are too focused on quick repayment, and they compromise strategic decisions. 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. Pay the money back, with thanks, as quickly as you can.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

They have totally changed the way you run a VC firm, investing heavily in systems & events for their founders that are pushing the boundaries of the way our industry works. The discussion with Howard Morgan starts off by acknowledging Josh Kopelman as a co-founder of First Round Capital. I'm a huge fan of this innovation.

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6 Keys To Managing Funding From People Close To You

Startup Professionals Musings

Some founders are too focused on quick repayment, and they compromise strategic decisions. New money from professional investors sees no value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge. Pay the money back, with thanks, as quickly as you can.

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The Damaging Psychology of Down Rounds

Both Sides of the Table

” In the article I discussed the downside of raising capital at a too high of a price and referred people to a previous article I had written encouraging founders to raise “ At the Top end of Normal ” as opposed to stratospheric prices. But in this case it works against the founders.

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The Good The Bad And The Ugly Of Funding From Friends

Startup Professionals Musings

Some founders are too focused on quick repayment, and they compromise strategic decisions. New money from professional investors sees no value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge. Pay the money back, with thanks, as quickly as you can.

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Don’t Hurt Friends and Family Investors Who Love You

Startup Professionals Musings

Some founders are too focused on quick repayment, and they compromise strategic decisions. 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. Pay the money back, with thanks, as quickly as you can.

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