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Equity is absolutely a form of debt, especially when given to the kinds of VCs that demand high exits. Maybe if there were VCs who would be happy to own part o
by s73v3r_ 8y ago
Equity is absolutely a form of debt, especially when given to the kinds of VCs that demand high exits.
Maybe if there were VCs who would be happy to own part of the company and be satisfied with the dividends from Github's revenue, it'd be a different story.
- icedchai 8y agoMaybe startups should go out and get true debt financing, then they don't have to give up that valuable stock? Oh, wait a minute, they generally can't because they have no real assets to borrow against. No, equity is not debt.