Remove Entrepreneur Remove Government Remove Recapitalization
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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

I thought about things I never had to as an entrepreneur: check size, ownership percentage, deal stage, portfolio construction and risk. So I encouraged entrepreneurs to think about raising their funds as quickly as they could because. I have a young entrepreneur friend who IMs me a lot. Unemployment likely to rise.

Stock 305
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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. See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? Governance. Their only option is to work with management to try to fix the problems.

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Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

Normal advisors are also assembled by naive entrepreneurs who think the mere presence of an advisory board will create social proof and help them raise money. They can even add more value than an independent board member because they don’t have to deal with corporate governance. Or they raise your money for you.

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On the Road to Recap:

abovethecrowd.com

Many modern entrepreneurs have limited exposure to the notion of failure or layoffs because it has been so long since these things were common in the industry. 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).

IPO 40