3 ms·

... 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.