4 ms·

Very high risk.

• toomuchtodo 4y ago
  For sure, but that’s where the high reward is. Scared money don’t make money.
  • UncleOxidant 4y ago
    Is there even time for some lending entity to do enough due diligence to figure out which of the startups are even worth gambling on? That could take weeks or months. In the meantime payrolls have to be met, leases and light bills paid.
    • deleted 4y ago
      [deleted]
    • dahdum 4y ago
      You aren't gambling on the startup if the collateral is the receivership certificate / advance dividend. Those should be quick to verify. Any loans up to $250k would be even easier.
    • toomuchtodo 4y ago
      Yes? https://news.ycombinator.com/item?id=35102196 https://news.ycombinator.com/item?id=35102196
      • toomuchtodo 4y ago
        https://news.ycombinator.com/item?id=35112410 https://news.ycombinator.com/item?id=35112410
  • xwdv 4y ago
    Scared money also doesn’t lose money.
    • lovich 4y ago
      Inflation is always eating away at scared money. You can’t sit on cash forever
      • xwdv 4y ago
        You could invest it in non-scary assets.
  • woeirua 4y ago
    No one is going to make these loans until they have some idea what the underlying assets might be worth.
    • icelancer 4y ago
      Some firms will make extremely low buyout offers knowing that at least a few businesses will have no choice but to take a massive unknown haircut or go bankrupt.