Michael Jackson’s Post

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Michael Jackson Michael Jackson is an Influencer

Venture Capitalist

"You think of the offer of cram down funding as a lifeline, but they’ve handed you a noose." Uh oh, cram downs are back. 😬 “While a few cram downs have been turned around (though I can’t think of any), given you haven’t found enough customers by now, the odds are you’re never going to be a successful enterprise. Your cram down investors will likely sell your technology for piece parts and/or use your company to benefit their other portfolio companies.” 🎯 Steve Blank nails it. Off the top of my head I can’t think of any big comebacks that came after a cram down. If that’s the offer on the table you’re likely screwed. https://lnkd.in/eVQ6hrVY #venturecapital #vc #startups #entrepreneur #entrepreneurship #funding

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John Furrier

Cofounder & CEO of SiliconANGLE Media; Executive Editor SiliconANGLE.com and Host of @theCUBE

2y

It's that time in the cycle for downturn mania. My observation and experience in down markets is that VCs led companies will react to press and market pressure differently than founder led companies. If the founder isn't in control the VCs will get scared and will move too soon to a down round. If founder is in control then more likely the company will navigate the waters of shifting markets. Experienced VCs have the playbook down - when valuations are high raise as much as you can to survive which means get that product/mkt fit and customer revenue moving to cash flow positive.

Christian Soschner

Strategic Growth Advisor | M&A and Venture Capital Expert | Deep Tech Executive & Board Member | Podcast Host 200+ Podcasts/Livestreams | 17x (Ultra-) Marathons Finished | Let's Connect and Drive Your Growth!

2y

Thanks for sharing. It‘s probably the return of economic principles Part 3. In a conversation 7 years ago I was a bit puzzled when a VC got angry after me talking about enjoying building functioning business models with founders. „Investing is an arbitrage game“, he explained „it is not about business models. It is about selling shares at a higher price.“ Now that the FED ends the party probably it will be about product/market fit and positive FCF again for a few years.

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Keith Gillard

Visionary sustainability leader, driving cleantech growth across global markets

2y

I have been involved in a few cram-downs that went on to great success. 8 years after we crammed down Redlen while I was at Pangaea (which was itself 12 years after I first looked at the deal when I was at Mitsubishi), we sold the company to Canon, realizing a high return on our investment and even returning the capital of the investors who got crammed down.

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Jason Crystal 🧙♂️

I help teams communicate clearly, simplify process, and accurately measure desired outcomes, so they can achieve their missions.

2y

Can you explain what this is, not familiar with this term

Adrian Jones

Venture | Startups | Dual-Use | Deep-Tech

2y

Great article by Steve Blank thanks for sharing Michael Jackson. Big fan of Steve and team at BMNT, Ltd. & BMNT

Christian Bunke 🇺🇦

Basck - Innovation & IP Strategy, Aalbun - LegalTech for IP tools and services

2y

Silly me thought they never had gone away but remember when they were common occurrence.

Sidney Scott

AI Product Leader, 3x Founder, Frontier Tech Investor

2y

Just here for the dodgeball meme LaFleur

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