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"There is no greater mistake than when a young man believes he will succeed with borrowed money." Isn't VC money essentially borrowed money?
by mleonhard 18y ago
"There is no greater mistake than when a young man believes he will succeed with borrowed money."
Isn't VC money essentially borrowed money?
- Allocator2008 18y agoNo. If VC money is for ownership of the startup, then no. If I lend somebody money and they promise to pay it back over N years with X interest, that is a loan. If I give somebody money in exchange for a certain number shares, that is a purchase. I am purchasing ownership in the startup. One does not "pay back" one's investors. Rather one generates a profit for one's investors.