YoungUpstarts
APRIL 16, 2020
If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. See if you and your finance staff can answer these questions: When did my business become unprofitable, and what caused the change? Research and development. How do I Turnaround an Unprofitable Business?
David Teten
JANUARY 19, 2021
When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.”
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Feld Thoughts
JULY 14, 2015
Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. So they recapitalize the company. And developing a reputation for recapping seed rounds is, in my book, silly.
venturehacks.com
MARCH 21, 2008
YC acts like a super advisor, not an investor—and YC makes their companies happen by helping develop the company’s product, introducing them to investors, and branding their companies. The company is acquired, recapitalized, or otherwise restructured and the advisors are no longer useful or desired.
blog.simeonov.com
FEBRUARY 22, 2010
I have been thinking a lot recently about how to apply agile development principles to investing and key aspects of startup development such as team building. However, founder agreements are not set in stone and it is common for them to be tweaked by a little or a lot during the first financing by professional investors.
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