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Good read, but the IOU plan is nonsensical... cash in one hand, or an IOU for the same amount in the other, issued by an entity with a very high likelihood of f
by sk5t 12y ago
Good read, but the IOU plan is nonsensical... cash in one hand, or an IOU for the same amount in the other, issued by an entity with a very high likelihood of failure? What? Maybe if the IOU started accumulating 20% interest.
- trhway 12y agohaving debt, high rising debt ... don't think that would play well with early investors... and without early investors it is pretty hard for a startup to live to see the late investors.
- bmm6o 12y agoSure, you'd want to be compensated for time and risk, but on the other hand you don't want to saddle the company with a ton of debt. It depends on how much money you're talking about. Either way, the point remains that it shouldn't be paid for with equity.
- akgerber 12y agoSecure the IOU with the valuable thing you brought.