Both Sides of the Table
AUGUST 9, 2011
On the positive side, corporate profits are up, their balance sheets have been repaired and they have recapitalized themselves to have lower amounts of debt relative to equity. Creative destruction will continue to create opportunities for people who understand the deflationary economics of the Internet. I’m long. And Social.
Feld Thoughts
AUGUST 20, 2012
If you were around during the collapse of the Internet bubble, you’ll remember this. Rather than shut down, they found a buyer / investor (which could be a subset of the existing investors) who would recapitalize the company and keep it going as long as he didn’t inherit the liabilities. Hence, the ABC process.
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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. TechCrunch A premier network of technology, startup and internet-related sites. The second example came along just this morning. A must read! startupcto
abovethecrowd.com
APRIL 20, 2016
The same thing happened to many Internet stocks. This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike). Late 2015 also brought the arrival of “mutual fund markdowns.”
www.paulgraham.com
APRIL 28, 2010
They say theyre going to work on Internet search.There are already a bunch of big public companies doing search.How can these grad students possibly compete with them? The reason you dont want to give them up is the following scenario.The VCs recapitalize the company, meaning they give it additionalfunding at a pre-money valuation of zero.
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