Ben's Blog

SEPTEMBER 21, 2010

outcome with no recapitalization. When a company fails to hit its financial plan so severely that it must fire the employees that it went to great time and expense to hire, it weighs heavily on the chief executive. During the first layoff at our company, I remember being forwarded an email exchange amongst a group of employees.

Recapitalization 78

Recapitalization Venture Capital Bankruptcy Employee 78

blog.simeonov.com

FEBRUARY 22, 2010

An email would do. They have voting rights which may entitle them to force or veto certain key decisions, e.g., hiring or firing the CEO, selling the company, raising money, etc. The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company.

Founder 44

Founder Vesting Agile Startup 44

philipsmith.typepad.com

SEPTEMBER 24, 2011

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. Someone in my network forwarded an email to me from a recruiting firm that is quite active in the Valley. Looks like you should have hired a CFO a long time ago!

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

venturehacks.com

MARCH 21, 2008

If you have more questions, email us at ask@venturehacks.com. Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. A naive entrepreneur hires the wrong business advisor and a major new investor asks the entrepreneur to clean up the dead wood.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

abovethecrowd.com

APRIL 20, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness? Often with teasers such as “20-40% discount to last round price.”.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

MARCH 1, 2010

Have you subscribed yet to my feed on Feedburner or do you want it delivered by email ? I believe that a motivated founder trumps a well-hired mercenary CEO any day of the week. • . • I can change management teams. • I earn outsized returns by having sharp elbows. Closing text.

Entrepreneur 321

Entrepreneur Warrant Silicon Valley Early Stage 321