Taylor received a call from her board, “We’ve got bad news. You’re going to need to shut down your startup” Her heart sank, and her stomach tied in knots. She knew this was coming but hoped she had a few months left. “We’ve got a couple of numbers for you to call. Pick a wind-down...
As a Chief Restructuring Officer, I’ve guided many startups through the intricate journey of shutting down. I often get asked, “How long does it take to shut down my startup?” The truth is that it varies greatly depending on several critical factors. Let’s explore these factors and understand how they impact the timeline of a...
In the rollercoaster world of startups, encountering unforeseen challenges that threaten the company’s existence is not uncommon. When such crises loom, enlisting a Chief Restructuring Officer (CRO) becomes not just a choice but a necessity. However, the role of a CRO is multifaceted, varying significantly based on whether they’re tasked with a company turnaround or...
As a Chief Restructuring Officer recently focused on turnarounds, I’ve worked with numerous startups grappling with the challenge of achieving and demonstrating product-market fit (PMF) to investors. For a struggling startup founder, this can seem like a daunting task. However, with the right approach and metrics, you can achieve PMF and effectively communicate this success...
In the combustible landscape of Silicon Valley startups, they call me Dr. Doom. Not a nickname I picked, but it’s stuck, and in a twisted way, I’m fond of it. To some, I’m the last phone call when the walls are caving in; to others, I’m the first step towards a fresh start. It was...
Trigger Warnings: Rich People Problems Several years ago, a famous painter passed away, the end of his life complicated by the problems of the wealthy: many heirs are laying claim to his artworld throne. The news came to me, Dr. Doom, not through the gossip of the art world but via a terse, unexpected phone...
It’s official: Your startup has entered the Zone of Insolvency, and you’ve hired a Chief Restructuring Officer to help you liquidate your startup assets and repay your venture debt creditors ASAP. You’ve been told an Assignment for the Benefit of Creditors is the best solution. Still, there are two types – a “Prepack” Assignment for...
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...
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...
