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Does anyone know how common it is to finance high-risk startup companies with the kinds of debt described above? Risky ventures and investors losing money aren
by talsraviv 12y ago
Does anyone know how common it is to finance high-risk startup companies with the kinds of debt described above?
Risky ventures and investors losing money aren't news, but I'm trying to understand if this story is unique because of the type of financing.
EDIT: ...other than, of course, the dishonesty.
- chatmasta 12y agoThe only reason I can see is predatory. They know if he signs his name he is personally liable so even if the venture blows up they can sue for his own money. And if the venture fails to pay the loan, but still builds value, the lender can take all his equity.