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That sort of company would raise money by selling stock, not through debt. Until it was big enough that it could secure debt with something other than the foun
by pg 17y ago
That sort of company would raise money by selling stock, not through debt. Until it was big enough that it could secure debt with something other than the founders' houses, anyway.
- TriinT 17y agoWhat I meant to say was that a capital-intensive startup would need venture capital to take off, but in that case the VCs would own the company. The founders would not exactly go into debt. You're totally right. Going into debt is something one should definitely avoid.
- billswift 17y agoI liked the book excerpt linked on HN last week and am currently reading Felix Dennis's "How to Get Rich". He places accepting venture capital as substantially worse than debt.