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I don't disagree, but for healthy cashflow companies, surely debt is a better option?
by martinald 6y ago
I don't disagree, but for healthy cashflow companies, surely debt is a better option?
- jannes 6y agoI think it has something to do with founders being able to take money "off the table" when they raise a round.
- simonebrunozzi 6y agoIf you're in a tight race against other companies which also raise large sums of money, and in markets where "winner take all" effects happen; then, it might still make sense to raise money. Normally, though, you are probably right.
- martinald 6y agoYes I do agree, but surely you'd want to tap out all the debt first before going to equity raises. Very rarely see any debt raised in startups, so quite interesting behaviour.