Market Intelligence & Thought Leadership
market analysis
The current crisis
In a $730+ billion startup ecosystem where 75% of companies never return cash to investors, incumbent restructuring firms focus narrowly on bankruptcy or liquidation services for larger companies. Current solutions respond reactively rather than proactively addressing emerging distress.
Common Crisis Triggers
Cash runway < 6 months
Burn rate exceeding revenues
Failed fundraising rounds
Key customer / partner loss
Regulatory challenges
Founder disputes
The True Cost of Traditional Liquidation
Traditional Liquidation Consequences
- Complete write-off of portfolio companies, resulting in $0 recovery
- Lost opportunity for business revival and value preservation + maximization
- Reputational damage to founders and management teams
- Personal financial risks and fiduciary liabilities for founders and board members
Alternative Path Benefits
- Portfolio companies retain value, improving overall fund performance
- Founders preserve reputation and continue their entrepreneurial journey
- Board members fulfill fiduciary duties and avoid personal liability
- Opportunity to restructure and optimize operations for growth yields optionality + alpha
- Potential for successful follow-on funding and investor confidence
Current Market Limitations
01
Law Firms
- Limited to legal solutions
- Inflexible compensation structure / misaligned incentives
- Push toward Bankruptcy / liquidation Solutions
02
Traditional Turnaround Firms
- Focus on large, fixed-asset-rich companies
- Don't "think like a startup" / lack agility
- Little deep-tech expertise
03
VC Advisory Firms
- Strategic advice without execution
- No restructuring expertise
- Unequipped to advise regarding complex distress
04
Tech-Enabled Solutions
- Limited to specific verticals
- Lack integrated approach
- No proven track record
The Gap in the Market
Most distressed startups are pushed toward standard exits: bankruptcy (Chapter 7, Chapter 11, or SubChapter V), ABC (Assignment for the Benefit of Creditors), friendly foreclosure, or simple dissolution.
These traditional liquidation and managed wind-down approaches fail to explore the full spectrum of reorganization and restructuring opportunities that could preserve and enhance value.
CRAGSI provides a uniquely integrated solution combining legal, financial, operational, and technical expertise with incentives aligned.
CRAGSI's Differentiators
01
Bespoke, Agile Solutions
- Flexible, proactive solutions customized to specific startup needs
- Avoids predetermined paths such as liquidation or ABC, preferring optimized strategic alternatives that may ultimately include those options but not until a full assessment of value-maximizing paths have been exhausted and presented
02
Accelerated Decision-Making
- Leverages proprietary AI technology and deep experience to swiftly analyze, plan, and execute
- Quick turnaround critical for startups facing financial urgency, beginning to extend runway by months in days -- not weeks or months -- all while competitors deliberate
- Skilled at handling complex scenarios rapidly, comprehensively, and methodically
02
Operational and Emotional Depth
- True partnership and ongoing support throughout the recovery journey
- Can deliver day-to-day execution, aligned with founders' and VCs' long-term vision, as we restructure and work together long-term
