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Except that cash has never in all of recorded human history been cheaper. So the "cash is expensive" argument doesn't really hold water. Put another way, some
by fredkbloggs 11y ago
Except that cash has never in all of recorded human history been cheaper. So the "cash is expensive" argument doesn't really hold water. Put another way, something else must explain why equity compensation is more common now than in the past, especially in light of how cheap cash is.
- sokoloff 11y agoCash for secured, credit-worthy borrowers is extremely cheap. Cash for startups with strongly and increasingly negative cashflow is NOT cheap.
- s73v3r 11y agoIn this case, cash is still more expensive because they have to have the cash, and they have to have it now. It costs almost nothing to issue the tiny percentage of stock you'd receive, and they don't have to worry about actually paying anything for a while, if ever.