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Down Rounds: Deal With Reality

Feld Thoughts

She has a good article today in TechCrunch titled Embrace the down round (it’s going to be okay, maybe). ” Now, I’m not encouraging anyone to do a down round if unnecessary., ” Now, I’m not encouraging anyone to do a down round if unnecessary., and a bunch of other things.

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Cram Down – A Test of Character for VCs and Founders

Steve Blank

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. A cram down is different than a down round.

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A heartbreaking story about time and money.

Berkonomics

Many of the start-ups my various angel funds have financed died a slow death , not because of poor concept but because of poor execution, wasting fixed overhead and draining the financial resources from the company coffers. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

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. I have two simple rules for founders in my head from this experience.

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Three Startup Financing Myths You Should Avoid

YoungUpstarts

If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. For some entrepreneurs, raising financing can seem like a full time job, particularly in these trying times. Unfortunately, much of this advice is wrong. Well not, wrong exactly.

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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

Amongst the most often asked questions I get from founders is, “How much money should I raise?” Reflexively founders want to raise as much money as they can because they figure it will give them more resources, better chances of competing and a longer runways before they have to do the often painful job of asking, yet again, for money.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

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