This sample form, a Down-Round Term Sheet document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.
After a Down Round, the company may need to refocus on growth and stability. It’s a chance to hit the reset button and map out a new strategy for success moving forward.
Being transparent with stakeholders is key. It's like being in a boat during a storm—staying calm and communicating clearly can help everyone weather the waves together.
It can be a bit of a dampener. Employees might worry about the company's future or their job security when they hear about a down round, so it’s important to keep communication open and positive.
Yes, it can happen to startups anywhere, Seattle included. The tech scene here is vibrant, but it's not always smooth sailing; markets can get tricky which might lead to down rounds.
Keep your eyes peeled for details like conversion rates and anti-dilution provisions. These bits are crucial as they can really shape the future of your stake in the company.
Existing investors might feel a pinch because their stake in the company could be diluted. It's like seeing your pie slice get smaller, which is never a pleasant surprise!
A Down Round Term Sheet is a document used during fundraising where the new investment is at a lower valuation than previous ones. It’s like resetting the bar lower, which can ruffle some feathers among existing investors.