Distribution Down Round Entrepreneur 
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.) The Customer Development Venture Pitch At this point I often hear entrepreneurs say, “We don’t have the money to scale. How do we raise the big bucks?”
Lightspeed Venture Partners
OCTOBER 7, 2012
He had been at it for 6 months and had no sales or distribution lined up yet. Lori quickly pointed out some problems with the product; it will be hard to move down stairs and it doesn’t wheel easily. In this way, they remind me of the Lifter Hamper entrepreneur. The entrepreneur was clearly desperate.
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Both Sides of the Table
MAY 30, 2018
One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.
Startup Company Lawyer
MARCH 14, 2010
My general opinion is that anything that makes the financing process faster and easier or otherwise educates entrepreneurs is a good thing. (A The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Registration rights.
ReadWriteStart
JANUARY 13, 2024
In a progressively saturated market, these startups need to reevaluate their strategies and wisely distribute resources to remain competitive and sustainable amidst the demands of investors and well-established competitors.
Growthink Blog
MAY 23, 2011
An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.
NZ Entrepreneur
SEPTEMBER 16, 2020
A much better analysis would be ‘if we do not secure this distribution agreement, the market share we can achieve by this date will be halved.’. If a startup expects $1M in sales revenue but only gets $100k and they haven’t got a backup plan, they may face a down round or in the worst case liquidity concerns. Follow on LinkedIn.
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