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Right, but if you were profitable and, I’m assuming the reason you needed the money was sound; you’d have to be incredibly unlucky if the only outside capital y
by nemothekid 7y ago
Right, but if you were profitable and, I’m assuming the reason you needed the money was sound; you’d have to be incredibly unlucky if the only outside capital you could raise was a down round.
You usually only hear downrounds from companies that are struggling to keep the lights on
- ec109685 7y agoSelling equity dilutes, whether it is an up or down round. That sold equity is potential appreciation that the firm selling won’t participate in. With debt, you promise a fixed rate of return instead, so the benefits are capped for the purchaser.