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The fact that any bank considered lending to a tiny company like this with no revenue stream is actually a positive sign. As for pledging all their "assets", th
by hackerfakenews 9y ago
The fact that any bank considered lending to a tiny company like this with no revenue stream is actually a positive sign. As for pledging all their "assets", that is completely standard. They have no assets to speak of - their "IP" is 100% worthless without future sales, which will never happen if the game doesn't get released. And further, because the money was raised from crowdfunding, the only equity holders that might suffer are the creators.
It's really important to understand finance if you want to understand the world and it's not that hard.
/thread
- macspoofing 9y agoDebt financing is tricky. If they stumble, they'll end up with nothing - and all they've done is stumble.
- shmerl 9y agoWho will suffer are backers who supported this project.
- valarauca1 9y agoThere is no scenario where Crowd Funding backers profit. I don't know why people who Crowd Fund act like they are owed anything. Funding a business via Crowd Funding is in most scenarios the dumbest economic decision you can make. Comparable to throwing money out the window in terms of ROI.
- shmerl 9y agoPeople who crowdfund are investors in the project. If it succeeds - they get the benefit they backed it for. And if it fails, they lose. Not every benefit is supposed to be measured in profits. So there is clearly ROI there, but not the way you described it (monetary gain).
- nunez 9y agohow can i get better at understanding finance beyond basic money management?