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> VC money is super expensive. it's expensive in the long term, if your company is successful. In the short term, it is cheap, because you don't pay interest o
by chii 3y ago
> VC money is super expensive.
it's expensive in the long term, if your company is successful. In the short term, it is cheap, because you don't pay interest on VC money, which makes your cashflow much better.
Bank loans/bonds are expensive up-front, because you are obligated to service interest. It's cheap in the long run because once your business generates revenue, you can use them to pay off the loan, and slowly wean it off, or find an even lower interest loan to refinance off.
Of course, a bank will only lend if you have collateral, while VC will "lend" if the business idea is good.