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Nobody will give you a business loan against a startup company without a stable existing revenue stream unless you provide a personal guarantee with collateral
by Negitivefrags 12y ago
Nobody will give you a business loan against a startup company without a stable existing revenue stream unless you provide a personal guarantee with collateral that you personally own.
The difference between a loan and investment is that if your business fails you don't lose your house.
- kayhi 12y agoI hear this, but do startups often try?
- mikeyouse 12y agoA pre-revenue biotech startup I worked for had a venture loan from SVB that had some equity-like covenants but was primarily backed by our IP. I don't see why something like that couldn't work with software companies as well if they have IP worth protecting.
- bjelkeman-again 12y agoHow did they get to the point of having IP in the first place? Who paid for that work?
- dnautics 12y agoIf it was biotech, the answer to that question is probably, "you", nih grants at a university, or an SBIR, from some government entity.