Back

Anonymous

Why founder think raising fund is an better option than taking debt ?

Havish Gupta

Figuring Out • 1y

It is a very simple answer 1) when we take debt, we are obliged to pay it. It doesn't matter that we make profits or not. We would have to pay it 2) but when we take funding, we get the funds by selling % of our company. So we don't have to pay the Inverster anything. He buys the stake so that when companies value increase, ge would sell that stake at higher cost. So even if the company goes bankcrupt, the founder doesn't have to pay the investor anything.

1 replies
Replies (1)

More like this

Recommendations from Medial

Image Description
Image Description

Havish Gupta

Figuring Out • 9m

What I have observed is that by paying attention to small details in any news, we can often predict the next big news. Let me explain with an example. Elon Musk was offered a seat on Twitter's board of directors after becoming the company's largest

See More
14 replies9 likes
3

Tanay A Mandelia

 • 

GoAhead Ventures • 3m

When Bro said, "Most people aren't searching for the truth, they're searching for a version of reality that doesn't make them the villain," Damn! It hit so hard.

0 replies7 likes
1
Image Description
Image Description

Asli Rover

Kya Kar Raha Hai Tu? • 1y

Honestly, so called entrepreneur are trying to create any thing just to called as Startup found or ENTREPRENEUR. Their idea, doesn't mean anything, it's doesn't solve any problem, it doesn't even compete with anyone. People are actually creating pr

See More
20 replies18 likes
Image Description
Image Description

Rajan Paswan

Honorary Mentions - ... • 1y

List Down Every Method You Tried to Earn Money!! (Doesn't matter you earn anything from it or not just add full list of your attempts you tried so far)

30 replies16 likes
1
Image Description
Image Description

Dev Kumar

Problems are solutio... • 6m

I think if someone doesn't know about anything then silence is the best option....

5 replies14 likes

Mohit Kumar

Building ElevateRes.... • 1y

This line from Mark Zuckerberg " ideas doesn't come naturally, it comes naturally when you start working on it". I think in my case it was so true. Stop doubting yourself.

0 replies1 like
Image Description

Vagle

Hakuna matata • 19d

When your first hire asks for paid leave: "Wait... we pay people here?"

1 replies10 likes
Image Description

Uttkarsh Singh

Learning • 8m

I don't use snapchat nor am I surprised or excited by seeing this launch by Snapchat because we all know everyone is trying hard to include AI somehow in their product, the big question remains when will AI become so seamless that it doesn't feel som

See More
1 replies15 likes
Image Description
Image Description

TheLuhas

Never take anyone as... • 7m

Is the theory true that if we spend a 100hrs in anything we will be the master of it

5 replies8 likes
4
Anonymous
Image Description
Image Description

What happens when a company fails to generate revenue after raising funds from a VC. Are the company owners obliged to any amount in return for investors And how will investor get an exit if the company is a loss making company

10 replies13 likes
1

Download the medial app to read full posts, comements and news.