The term “Zone of Insolvency” often floats around in financial and legal circles, but pinning down its meaning is like trying to catch smoke with your hands. No mathematical formula or financial algorithm can reliably signal when a business enters this nebulous zone. The irony is that you usually only realize you’ve been in this...
Unlike traditional Venture Capitalists, whose primary interest is to see a return on their investment, strategic investors often have ulterior business motives. They might be interested in the start-up’s technology, customer base, team, or blocking competition. It’s crucial to discern why they’re interested in the first place. One main attraction for strategic investors is the...
At Ravix Group, we understand shutting down your start-up can be confusing, challenging, disheartening, and emotional. Here are key terms to help you better understand a vernacular you hoped never to have to know: Assignment to the Benefit of Creditors (ABC): A state law insolvency proceeding wherein a company voluntarily transfers its assets to a...
What is an Assignment for the Benefit of Creditors (ABC)? An Assignment for the Benefit of Creditors (ABC) is a state law insolvency proceeding wherein a company, realizing it cannot continue its operations and meet its financial obligations, voluntarily transfers all its assets to a third-party assignee. The assignee then takes responsibility for liquidating the...
From the Desk of Dr. Doom, Chief Restructuring Officer: Trigger Warnings: VC indecisiveness, looming debt I landed in Nashville last night after a call from a friend investor, Beatrice. Always intelligent and direct, Beatrice got straight to the point. “I need your help,” she began, her voice devoid of any fluff, “I have an amazing...
From the Desk of Dr. Doom, Chief Restructuring Officer: Trigger Warnings: Uncontrollable engineer spend In a world where startups rise and fall at the drop of a hat, my reputation preceded me. They called me Dr. Doom, not because I brought the end, but because I could discern when it was inevitable and how to...
From the Desk of Dr. Doom, Chief Restructuring Officer: Trigger Warnings: Miscalculated Revenue In the heart of Silicon Valley, where million-dollar deals were made over a cup of artisanal coffee and a maple bacon donut, yet 90% of companies fail, I was a beacon of hope and despair. They called me Dr. Doom, the Chief...
From the Desk of Dr. Doom, Chief Restructuring Officer: Trigger Warnings: Disgruntled Employee Silicon Valley, 2017. A land of dreams, where some soared high while others plummeted. For over a decade, I’d made my mark not in crafting dreams but in closing their chapters, wearing the title of Chief Restructuring Officer with a mix of...
From the Desk of Dr. Doom, Chief Restructuring Officer: Trigger Warnings: Uncontrolled Debt, Zero Profitability It was a routine morning when my inbox flashed with an introduction email from Bailey, a known board member from the industry. The subject: “Harry’s Crisis: Urgent Intervention Needed”. The content was straightforward; Harry’s decade-long dream startup venture was in...
