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I'm really not sure what's the point of the article. The idea that there is no debt yet in "tech" isn't even true. Uber, WeWork, and especially Tesla have been
by H8crilA 7y ago
I'm really not sure what's the point of the article. The idea that there is no debt yet in "tech" isn't even true. Uber, WeWork, and especially Tesla have been raising capital via debt. Not to mention Brex which covers the tail end of the startup market with "debt backed by revenue". I'm putting it in quotes because it's a ridiculous idea.
- CPLX 7y agoAs far as I can tell Brex literally just “lends” money to people that already have money. They lend based on cash in the bank and have the right to debit cash straight from the bank account. It hasn’t been clear to me that they’re even involved in any kind of actual issuance of debt in a meaningful sense at all.
- thoughtstheseus 7y agoOnce a company has substantial money (runway) they’d just move to a better banking provider. Brex seems geared toward start-ups not companies that make money. Weird business model.
- aianus 7y ago> As far as I can tell Brex literally just “lends” money to people that already have money. It hasn’t been clear to me that they’re even involved in any kind of actual issuance of debt in a meaningful sense at all. It's exactly the same as Chase lending an individual Google engineer $5k for free for the month on his Visa card despite the engineer having $50k in his savings account already. They make money on the interchange.