YoungUpstarts
APRIL 16, 2020
If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. What are my gross profit and gross margin by product/service? Cut slim-margin or low volume products and services. How do I Turnaround an Unprofitable Business? What are my top 3 costs? Administration.
The Startup Magazine
FEBRUARY 11, 2022
Their investment supported Stat Health’s recapitalization, alongside Spanos Barber Jesse & Co. Through these applications including its core product CareBook, DataLink helps healthcare payors and providers by resolving gaps in patient care while also improving quality performance metrics.
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Steve Blank
APRIL 26, 2022
Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. While cram downs never went away, the flood of capital in the last decade meant that most companies could raise another round. Why do VCs Do This?
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. Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Their only option is to work with management to try to fix the problems.
Both Sides of the Table
JULY 29, 2015
I worked with a founder who advocated for a product pivot and then shut it down right after launch because customers didn’t immediately sign up. You find out those that have the fortitude to work out a new way forward, who can handle recapitalizations or downsizing or shutting down business lines or hiring whole new teams.
David Teten
NOVEMBER 8, 2011
A good model should have the ability to test assumptions in order to analyze the impact on future financial performance, including growth rates, operating margins, product lines/individual segments, and refinancings/recapitalizations. The purpose of the model should directly influence how you think about its design and functionality.
Feld Thoughts
JULY 14, 2015
The company spends the $1m building and launching their first product. The product gets a lot better. So they recapitalize the company. 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.
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