Both Sides of the Table

APRIL 20, 2011

He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. CEO Network – CEO’s from the portfolio companies are introduced to each other. Then they consider if it is a big enough market. Howard gives an example of an entrepreneur wildly overstating a market size.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Rob Go

SEPTEMBER 2, 2014

This forces some level of intellectual honestly about one’s position in the market, and can push you to try to see around corners and respond. In a frothy market, rounds can get done in this way at pretty high prices (or valuation caps for notes) albeit with less value-added investors involved. Getting Crammed Down.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

Rob Go

MAY 21, 2014

Network effect businesses. Care.com is a classic network effects business. The more and better the caregivers in the network, but more valuable it is for consumers. Care just went public, is an $80M+ revenue business, and has a multi-hundred million dollar market cap (not a vapor private valuation). eCommerce.

Boston 57

Boston Cram Down Indiana eCommerce 57

Growthink Blog

MAY 23, 2011

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112