YoungUpstarts
APRIL 16, 2020
If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. Furlough non-essential employees. This is like taking a magnifying glass to each cash flow in and out and ensuring week-to-week survival. How do I Turnaround an Unprofitable Business? Delay vendor payments.
Steve Blank
APRIL 26, 2022
They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Heck, all your prior investors, employees and advisors who trusted and bet on you get nothing, but you and a few key employees come out OK. You’re not. Life is short.
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philipsmith.typepad.com
SEPTEMBER 24, 2011
While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game.
Feld Thoughts
AUGUST 20, 2012
I read a few articles over the weekend about OnLive potentially going out of business, potentially screwing its employees, and a few other things. It’s painful and sucks when you are part of a company that fails (I know from experience – I’ve been there many times) – whether you are a founder, employee, or investor.
Ben's Blog
SEPTEMBER 21, 2010
outcome with no recapitalization. share, unlimited bad press and 3 separate layoffs where we lost a total 400 employees, he was most amazed by the layoffs. After seeing their friends laid off, employees were no longer willing to make the requisite sacrifices needed to build a company. Here’s how. Step 1: Get your head right.
www.paulgraham.com
APRIL 28, 2010
Or you canbecome a de facto employee of the company. The reason you dont want to give them up is the following scenario.The VCs recapitalize the company, meaning they give it additionalfunding at a pre-money valuation of zero. It doesnt happen often.Brand-name VCs wouldnt recapitalize a company just to steal a fewpercent from an angel.
blog.simeonov.com
FEBRUARY 22, 2010
This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company. Initial vesting typically matches employee founders.
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