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People can't get mortgages; I am skeptical that college dropouts could literally take out billions to create a shipping startup which is already a crowded space
by lolsal 5y ago
People can't get mortgages; I am skeptical that college dropouts could literally take out billions to create a shipping startup which is already a crowded space, without offering a significant value add, with no collateral or experience.
- stcont 5y agoMortgages and equity funding aren’t really comparable since the terms of the instruments and risk tolerance of the investors is very different. Just because someone can’t qualify for a mortgage doesn’t mean they can’t raise funds for a business.
- lolsal 5y agoI just can't believe any financial institution would underwrite a large business plan with no collateral but would not underwrite a mortgage for the same person when they could repo the house/property if the mortgage failed. I have no problem personally getting a mortgage, but even with a fantastic business plan I wouldn't give myself $10M for a shipping startup. Am I totally out of touch?