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? How do I Turnaround an Unprofitable Business? What are my top 3 costs?
Steve Blank
APRIL 26, 2022
For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round. Other times it was simply a take-it-or-leave-it, here are the new terms.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
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.”
blog.simeonov.com
FEBRUARY 22, 2010
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. The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company. more details ].
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. The second example came along just this morning. Someone in my network forwarded an email to me from a recruiting firm that is quite active in the Valley.
abovethecrowd.com
APRIL 20, 2016
Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. This is uncharted territory.
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. A company raises $1m of seed money from angels in a convertible note with a $6m cap.
Expert insights. Personalized for you.
200 
Let's personalize your content