Founders – Use Your Down Round To Clean Up Your Cap Table
FEBRUARY 9, 2016
I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. I suffered through the next financing after implementing a complex structure, or a sale of the company, or a liquidation. Until you are consistently generating positive cash flow, you depend on someone else for financing. Then, if you end up doing a down round, it suddenly matters a lot.