Steve Blank
APRIL 26, 2022
They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. W hy would any founder agree to this? No founder is prepared to watch their company crumble beneath them. VCs will stop playing this game when founders stop negotiating.
YoungUpstarts
APRIL 16, 2020
If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. Stop founder salaries. During the good times, founders may shop around for the best terms on a financing round. How do I Turnaround an Unprofitable Business? Examples include: Max out credit cards.
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The Startup Magazine
FEBRUARY 11, 2022
Their investment supported Stat Health’s recapitalization, alongside Spanos Barber Jesse & Co.
David Teten
JANUARY 19, 2021
From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.
Feld Thoughts
AUGUST 20, 2012
The first articles were weirdly hostile with a focus on how OnLive just laid all their employees off in preparation for a sale in order to enrich the founders/investors at the expense of the employees. The founders equity, the investors equity, and the employees equity. Companies fail – all the time. Hence, the ABC process.
blog.simeonov.com
FEBRUARY 22, 2010
Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.
Both Sides of the Table
JULY 29, 2015
It’s my hypothesis of why so many founding teams have 3-4 founders. I’ve seen many first-time founders who had fallings out with their co-founders, had lawsuits, had investors bail on them, lost market momentum. But I’ve been thinking a lot about failure in the past year or so. I fund both types all the time.
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