The lack of nuance in the debt discussion is such a disservice to founders.
Treating debt like equity is bad. Full stop.
Treating debt like leverage for the parts of your business that are efficient and predictable is an equity/optionality/control preserving superpower.
@SirJRG@joelgascoigne@indievc Something i really would like founders to write more about is that default alive is a huge attraction for a particular kind of devs you want to hire. The one that have seen too much. We don't want equity. We want solid salaries that will keep coming.
Never a wrong time to build a Real Business.
“Real businesses want to stay in business, not run for the exit. They create their own source of funding and don’t have to ask anyone for permission to exist.” -@indievc
Your friendly reminder that the best display of solid business management is positive cash flow.
Your profits are nothing to be ashamed of.
They should be treated as a badge of honor.
@justingordon212 👋 check out our website.
We have an overview of most non-dilutive financing options and have partnered with 30+ firms to make them easy to access.
https://t.co/8dD0kisEZY
Talked to a founder yesterday who used @introdotme after exhausting all other options.
Found a vetted partner they didn’t even know existed that could meet their needs and grow with them over time.
We do the hard work of hand picking partners to avoid this kind of bad behavior.
Not all debt providers are created equal but don't assume none of them will work with you through the ups and downs.
It's a lie that only equity investors will treat you well when your company sees hard times.
Find founder friendly debt at:
https://t.co/8dD0kisEZY
I was talking to another founder who took venture debt.
"Secured by the equity in your company?" I asked, already guessing both the answer and the result.
And indeed, the lenders had tried to call the loan on a technicality. Only toughness and good lawyers saved him.
I don’t know one quality venture debt provider trying to find technicalities to call the loan.
It creates a lot more work and costs for the lender to try to get their money back.
Not to mention the reputation damage that could stop them from working with a startup.
Both debt and equity have their place in the pantheon of options for funding and scaling a business.
Using debt can build a balanced Capital Stack that preserves optionality and rewards ALL shareholders.
See what non-dilutive capital fits your business:
https://t.co/1XBiJ4aXQm
Most Series A companies have some debt (Venture Debt, line of credit, etc.).
Despite negative comments from VC Twitter, many times, it’s the VCs/board requesting it.
Companies even add the debt to the funding size in the press release.
It is less controversial than advertised.
Hey healthcare folks, dive in to @introdotme. And remember (not to be a downer), when you gleefully announce that $50M seed round, that’s gonna bite you in the 🍑 ~95% of the time in a few years. There are options besides that outcome, but only if you think differently.
Hands down the best resource to understand financing options for young, growing companies: https://t.co/GVP1dNI6Fe
Thank you @bryce and https://t.co/1TEpLMdJRp for your pioneering leadership
Working through the problems instead of giving up reminds me of coaching that @bryce has given me:
“The highs are insane, and the lows are crushing. The key is to not get off the ride.”