Downrounds are happening and more as the startup ecosystem is grapples with the aftermath of the 2021 VC bubble and a depressed tech stock market. Here is a practical guide on how to deal with one.
Congress is working on a tax package (called the Smith/Wyden tax package) that could revive key tax provisions, including the deductibility of research and development expenses.
When a startup goes through a downround, things can be very painful. Typically a downround will impact the founders a lot more than the venture capital investors , but if your startup has venture debt then things could become even more difficult. So what happens to venture debt when a startup goes through a downround, and what can you do at your company to work through that happening?
Deposits are an important part of venture debt. It’s normal for part of the deal to require you send the lender, say, $20,000-$30,000. So why are deposits required by your lender when you sign a venture debt term sheet?
Off balance sheet items are usually spoken of in hushed tones when public companies crash and burn, usually in the haze of opaque financial disclosures.
Compliance with regulatory requirements is crucial for the success of any business, but startups, with limited resources, need to be particularly careful.
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