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Are you sure that most VC comes from savings?
by richcollins 16y ago
Are you sure that most VC comes from savings?
- trevelyan 16y agoI'd interpret "most startups are funded by savings" as meaning private savings rather than either VC or Angel investment.
- jswinghammer 16y agoWouldn't it have to? You can't take out a loan for a VC venture for less than 5% considering the extreme risk involved in a poorly run fund. I'd imagine debt financing would be cost prohibitive even if you found a bank crazy enough to loan you the money.
- richcollins 16y agoAre you sure that banks don't somehow have a hand in these funds. I don't know -- just guessing that easy money has something to do with all of the cash getting tossed around right now.