Steve Blank

APRIL 26, 2022

Cram downs are back – and I’m keeping a list. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. A cram down is different than a down round. Cram downs wouldn’t exist without the founder’s agreement. Stopping Cram Downs.

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

Startup Professionals Musings

JUNE 2, 2013

This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand. No VC or Angel investors I know are interested in a bunch of angry, crammed-down small investors as co-shareholders. They bet on the jockey, not the horse. Funding risk. Before that, rely on friends, family, and fools.

Angel Investor 269

Angel Investor Cram Down Intellectual Property Venture Capital 269

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.

Lean 263

Lean Silicon Valley Startup RSS 263

Startup Professionals Musings

MARCH 22, 2020

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. New money from professional investors sees no value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

OCTOBER 10, 2014

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. New money from professional investors sees lesser value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

MARCH 9, 2018

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. New money from professional investors sees no value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

NOVEMBER 11, 2015

That means writing down and signing the terms of the agreement, after making sure everyone understands them. Tie payments to your product or service revenue. New money from professional investors sees lesser value in old money, so the equity of early investors is “crammed down” and often lost in the scale-up surge.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120