Both Sides of the Table
MAY 30, 2015
This is called a “full ratchet,” which is also historically a term that VCs would be crucified for trying to get away with but I’ll avoid talking about that in this post.]. If a VC tried to do this to you on an early-stage deal they would get such a bad reputation that no other VCs or entrepreneurs would work with them.
abovethecrowd.com
APRIL 20, 2016
Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. They basically cannot afford to expose themselves to any more risk in a particular name. They use the reputation of the other investors as a proxy for due diligence.
Startup Lessons Learned
MAY 27, 2020
Akash Bakshi : Hi, my name is Akash. Nadja Mannowetz : My name is Nadja. And often what we're seeing in these hydroxychloroquine studies is a big ratcheting of a typical dose. You ratchet up a drug that has known side effects. And that will feel pretty amazing. Here is the story of ANA Therapeutics. I got a Ph.D
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