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.
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. Some founders are too focused on quick repayment, and they compromise strategic decisions. Try to avoid obligations with fixed repayment schedules.
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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. Some founders are too focused on quick repayment, and they compromise strategic decisions. Try to avoid obligations with fixed repayment schedules.
Steve Blank
NOVEMBER 2, 2009
In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.
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. Some founders are too focused on quick repayment, and they compromise strategic decisions. Try to avoid obligations with fixed repayment schedules.
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. Some founders are too focused on quick repayment, and they compromise strategic decisions. Try to avoid obligations with fixed repayment schedules.
Growthink Blog
MAY 23, 2011
With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years.
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