philipsmith.typepad.com

SEPTEMBER 24, 2011

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. The second example came along just this morning. Someone in my network forwarded an email to me from a recruiting firm that is quite active in the Valley.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

Feld Thoughts

JULY 14, 2015

So they recapitalize the company. But instead of adding it on to the note or doing an equity round with a price, which could still be an early stage price but below the cap, they make the argument that since the company couldn’t raise a round, the company is worthless.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

venturehacks.com

MARCH 21, 2008

The company is acquired, recapitalized, or otherwise restructured and the advisors are no longer useful or desired. The company has left the line of business where the advisor added value. A naive entrepreneur hires the wrong business advisor and a major new investor asks the entrepreneur to clean up the dead wood.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Ben's Blog

SEPTEMBER 21, 2010

outcome with no recapitalization. Shortly after we sold Opsware to Hewlett-Packard, I had a conversation with the legendary venture capitalist Doug Leone of Sequoia Capital. He wanted to hear the story of how we went from doomed in the eyes of the world to a $1.6B

Recapitalization 71

Recapitalization Venture Capital Bankruptcy Employee 71

abovethecrowd.com

APRIL 20, 2016

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.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

APRIL 28, 2010

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. Then its up to themto tell VCs early on.

Angel Investor 63

Angel Investor Syndication Syndicate Dilution 63

blog.simeonov.com

FEBRUARY 22, 2010

The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company. With the right legalese, even a small shareholding can exert a huge influence and make it near impossible to remove the founder.

Founder 44

Founder Vesting Agile Startup 44

Both Sides of the Table

AUGUST 9, 2011

On the positive side, corporate profits are up, their balance sheets have been repaired and they have recapitalized themselves to have lower amounts of debt relative to equity. The fundamentals in our economy are mostly not on more solid footing than when I wrote the posts in 2009 and 2010. Not just tech companies but industrials, too.

Stock 305

Stock Technical Review Marketing Greece 305

Both Sides of the Table

MARCH 1, 2010

I really believe that some firms have the strategy of edging out the entrepreneurs, bringing in a new management team, recapitalizing the company, minimizing the founders’ share and taking maximum ownership for the VCs. . • O utsized returns through sharp elbows – OK, here is what it boils down to.

Entrepreneur 321

Entrepreneur Warrant Silicon Valley Early Stage 321