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...
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: 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...
