3 ms·
No, I meant equity. If you are not using significant (20%+ of capital at a minimum)debt in your capital structure, you are almost guaranteed to be making a fina
by mamonster 11mo ago
No, I meant equity. If you are not using significant (20%+ of capital at a minimum)debt in your capital structure, you are almost guaranteed to be making a financial mistake.
- eru 11mo agoIt depends on your industry and stage of your company and jurisdiction. Many software startups run with 100% equity, and I don't think they are all idiots. A pet peeve of mine is people complaining about too much leverage, but then not doing anything about the tax systems making debt financing cheaper compared to equity.
- eru 11mo agoP.S. Some companies even have more than 100% equity. In a sense: when their market capitalisation exceeds their enterprise value.