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. A cram down is different than a down round. Cram downs wouldn’t exist without the founder’s agreement. Stopping Cram Downs.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Startup Professionals Musings

MARCH 22, 2020

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

MARCH 9, 2018

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

NOVEMBER 11, 2015

In the interim, there is no market for the shares, and no dividends or interest. That means writing down and signing the terms of the agreement, after making sure everyone understands them. Insist on paying market rates for commercial loans, since the IRS can instigate some nasty consequences on “gifts.”

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Startup Professionals Musings

JUNE 2, 2013

This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand. Angels expect at least a working prototype and a hint of market acceptance (traction) before investing. No VC or Angel investors I know are interested in a bunch of angry, crammed-down small investors as co-shareholders.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Rob Go

MAY 21, 2014

Care just went public, is an $80M+ revenue business, and has a multi-hundred million dollar market cap (not a vapor private valuation). The company is no longer really a secret, and is doing over $1B in revenue. What a beautiful business – nice hardware revenue + recurring subscription in a big category.

Boston 57

Boston Cram Down Indiana Silicon Valley 57