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In some countries, if your startup fails you're legally obliged to pay back all money that was invested in it, and you won't be able to start another until you'

In some countries, if your startup fails you're legally obliged to pay back all money that was invested in it, and you won't be able to start another until you've done so.

jcelerier 5y ago
... it's not the case in the US ? Wtf
- pwthornton 5y ago
  It's not a loan from a bank. It's an investment, and the nature of investments are that some fail. It's pretty wild that founders would need to pay back this money. That would have a massive drag on any risk taking or innovation. The entire point of venture capital and similar funding mechanisms is that in exchange for a potential massive return on investment, funders are willing to lose everything.
  - csomar 5y ago
    Loans from the bank if they are tied to you personally. A delaware c-corp has pretty good protections.
    - 988747 5y ago
      Which also means that banks would be very hesitant to giving them any loan. Bank strategy is to avoid risk, while VC strategy is to take risks.
siscia 5y ago
Which countries?
bennysomething 5y ago
Which countries? I've never heard of this, sounds insane!
qznc 5y ago
It depends on what kind of company you start. One with limited liability often requires more upfront investment.