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What Do I Do If My Business Runs Out Of Cash?

YoungUpstarts

If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. What are my top 5 expenses as a percentage of sales? Good targets include: Underperforming sales agents. This is done to eliminate administrative complexity, focus sales strategy, and reduce inventory.

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Mark Hauser’s Hauser Private Equity Spearheads Major Deals in Industrial Sector

The Startup Magazine

Their investment supported Stat Health’s recapitalization, alongside Spanos Barber Jesse & Co. The company both designs and manufactures premium key switches for mechanical keyboards, branded gaming peripherals, computer input devices such as mice and headsets in addition to products for security, point-of-sale and e-Health applications.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

When the company hits potholes, Flexible VC investors usually don’t have the nuclear options of firing management and/or doing a recapitalization. Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Their only option is to work with management to try to fix the problems.

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What Just Happened With OnLive?

Feld Thoughts

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. By the end of the weekend the reporting was more thorough and balanced. Companies fail – all the time. Hence, the ABC process.

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Silicon Valley Frontlines: Two Tales of "Working For Equity"

philipsmith.typepad.com

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. This same 'later stage can't pay you anything up front' ruse gets done for sales and marketing types, too. Sales & Marketing. Less Fortunate.

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Startup Founder Agreements

blog.simeonov.com

If such individuals do not form a business entity to conduct business in the Field of Interest, but instead sell or assign their developments and technology in the Field of Interest to an unrelated party, I shall be entitled to [ this will vary based on the type of founder ] of the net consideration received by reason of such sale or assignment.

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On the Road to Recap:

abovethecrowd.com

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). Any investor asked to follow a dirty offering will look at the complexity of the previous offering and likely opt out.

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