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I hope this opens people's eyes about venture debt. A much cheaper alternative compared to preferred stock - the traditional VC go to. Unless we know the debt
by OGinparadise 14y ago
I hope this opens people's eyes about venture debt. A much cheaper alternative compared to preferred stock - the traditional VC go to.
Unless we know the debt terms, I wouldn't comment on that. For all we know, it might have been the equivalent of a payday loan. I doubt Foursquare was in the driver's seat.
- awaxman11 14y agoI agree with you, however in most cases debt is cheaper than equity, and it is an alternative that is rarely looked at by founders. Entrepreneurs take VC terms at face value without thinking twice. As the space gets more and more competitive with non-traditional early stage / growth investors (i.e. hedge funds, strategics) I believe we will see a lot more creative deal structures and terms that are more favorable to entrepreneurs
- OGinparadise 14y agoProbably they think of Google and Facebook. "X% of a 50+ billion is better than..." and all