Will Price, a principal with venture capital firm Hummer Winblad, has a very interesting post called Isolating Causality: Bad Market or Bad Company. Will identifies a series of factors that can help start-up companies and their investors tease out whether a company’s financial and performance problems are company-centric or instead the result of not having a viable market for its products or services.
Being able to tell the difference is crucial. As Will points out, when the problem is the absence of a market, neither additional investment nor new management will solve the problem. Instead, these companies are likely to be sold, wound down, or have to file for bankruptcy.
Bob Eisenbach
Listed in The Best Lawyers in America® for Bankruptcy and Creditor-Debtor Rights Law, and recognized as one of Northern California’s Super Lawyers®, Bob focuses his practice on restructuring, bankruptcy, distressed M&A, and related litigation. He is regularly involved in cases throughout the country, including California, Delaware, and New York.