As a startup founder, you’re constantly fundraising, deciding which bills to pay – and if you should even pay yourself. You spend countless hours building a startup only to chase the dream with little result – how do you stop the cycle of never having enough cash? Can you turnaround? Or should you wind-down? Here...
It’s that time of year again, planning for the upcoming year, making assumptions and reporting to the higher-ups. Calculating the size of your market isn’t a one-time exercise for your pitch deck, its an annual planning metric that can change the way you view your Ideal Customer Profile, and help focus your marketing and sales...
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...
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...
Lately, we’ve heard tales from our beloved Dr. Doom, a Chief Restructuring Officer who can help turnaround, or wind-down a startup depending on the circumstances. Here are 5 key takeaways from some of his lessons to avoid bankruptcy court: 1. Get Ahead of It: The Six-Month Runway Rule In the high-stakes game of startup survival,...
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...
In our first post, Strategic Buyer: Beware, our startup founder, Margaux, realized a strategic investor initially showing enthusiasm to invest in her startup used a string along tactic to buy her startup for pennies on the dollar. What are some steps Margaux could have taken to avoid a tragic outcome? Tips for Avoiding a Strategic...
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...
