Under the cold, clinical glow of his office lights, I received the call that set the next challenge into motion—a biotech firm couldn’t get another round of funding after the FDA approval failed, buried under a mountain of debt and regulatory scrutiny. The voice on the other end was Jerri, a friendly Venture Capitalist I’d...
When it comes to winding down your startup, understanding the associated costs is crucial for an orderly and compliant closure. The expenses can vary greatly depending on the method chosen – Bankruptcy, Assignment for the Benefit of Creditors (ABC), or a direct Wind-Down. Let’s dive into what these processes entail and the likely costs involved....
As Dr. Doom, a Chief Restructuring Officer, I’ve faced many challenges, but the case of this chair company was particularly intriguing. The founder, an eccentric and brilliant architect, had combined his passion for design with the unparalleled craftsmanship of Amish artisans. Yet, his pursuit of perfection was leading the company to financial peril. It was...
The Los Angeles skyline was a blend of sleek modernity and gritty realism, much like the business ventures it housed. In a nondescript warehouse in Downtown LA, luxury and ambition hung heavy in the air, alongside the scent of high-quality fabric. This was the domain of the Newtson Brothers, a pair of fashion entrepreneurs who...
Embarking on the wind-down phase of a startup is a challenging moment. It’s a time when decisions made can significantly impact the final outcome for all stakeholders involved. Recognizing this, Ravix Group’s upcoming tool, A Guide to Interviewing and Hiring a Chief Restructuring Officer for a Wind-Down, is designed to assist founders in selecting the...
When debts are piling up, product market fit isn’t happening, and the runway seems to be getting shorter and shorter, a startup must often face the daunting prospect of a wind-down. In this intricate process, managed escrow services become critical (see Dr. Doom’s story: The Painter, The Napkin, and the Escrow). As someone who has...
