Less any bright eyed startup founder take this post too seriously, I’ll spell it out: venture debt is bad. Debt issued to established companies is an essential

Less any bright eyed startup founder take this post too seriously, I’ll spell it out: venture debt is bad. Debt issued to established companies is an essential mechanism to bridge working capital needs - like GM procuring millions of pounds of sheet metal before selling thousands of cars. This is not controversial. Venture debt issued to startups by bankers, especially by the kind of bank who fancy themselves as a Bank for Silicon Valley, and the types of bankers who, after a few too many cocktail parties with VCs, fancy themselves venture capitalists. It’s just these pseudo-venture capitalists have the risk tolerance of...bankers. If you pioneer a new space, particularly in consumer electronics with high working capital needs and you are initially successful you will be offered venture debt. If you take it, you will be more successful and you will have copy cats. Some of those copy cats will be FAANG companies. When this happens the bankers will freak out and pull your working capital. Or exercise a clause that forces a premature sale. Or...or..or. Woe to you if you were banking on that to make this years Black Friday/Christmas demand. Alex’s post highlights a need in the space. Don’t confuse it with the services currently offered.