Navis AdvisoryVenture Capital as a Service · Marketplace / Fashion Tech
Saving a marketplace startup from bankruptcy: cap table restructuring and investor negotiations
The challenge
Two-sided marketplace with >$100k GMV had raised a convertible note (~$6.1M incl. accrued interest). Business had not taken off as hoped, resulting in a capital structure that was not viable to incentivize founder, employees or new investors. Lead investor was initially not open to negotiations.
The solution
- Defined and modeled options for repairing the cap table, including debt restructuring, issuing new shares and liquidation
- Made key introductions to top VC investors for feedback on proposal to the lead investor
- Supported negotiations with lead investor
The impact
- Agreement reached with lead investor to convert debt into preferred equity
- Company saved from bankruptcy; resumed growth and continued hiring
In their words
Ben is a whip smart investor who was able to add real value within the first week that we worked together. He helped me through a successful restructuring of my business.
Client: Swipecast. Named with permission.