I frankly didn’t understand this article. First there’s already VC debt, and Silicon Valley Bank is also a big lender. There are lots of shops out there that wi

I frankly didn’t understand this article. First there’s already VC debt, and Silicon Valley Bank is also a big lender. There are lots of shops out there that will loan against revenue streams (often we see this tied to hardware). Also the idea that a basket of debt is going to have some enormous payoff Is just painful to listen to. Your upside is capped and you can have ruin. Who wants to invest in ultra junk bonds. The reason equity financing works for startups is the promise of an enormous outsized outcome That pays back all of your losses.