"you should seriously be considering looking at your business fundamentals before you are trying to raise funding by other means."
+ They may not have a choice. A lot of things require working capital in one way or another.
"They will gladly step in with their attorneys and carve out any asset they can from your precious company." - thing is most startups have zero in the way of assets. So ... there's not a lot to collect upon. It's not like writing off a mortgage, wherein they can recoup 75% of the loan on foreclosure.
The whole premise of this article is upside-down ... why are startups with limited ability to collateralize even getting debt at any price?
I'll bet that this 'phenom' is happening for a variety of very specific reasons, and that 'debt' happens to be the common instrument, hence the basis for the article. If they broke it down into the various categories, we might get a better picture.
+ They may not have a choice. A lot of things require working capital in one way or another.
"They will gladly step in with their attorneys and carve out any asset they can from your precious company." - thing is most startups have zero in the way of assets. So ... there's not a lot to collect upon. It's not like writing off a mortgage, wherein they can recoup 75% of the loan on foreclosure.
The whole premise of this article is upside-down ... why are startups with limited ability to collateralize even getting debt at any price?
I'll bet that this 'phenom' is happening for a variety of very specific reasons, and that 'debt' happens to be the common instrument, hence the basis for the article. If they broke it down into the various categories, we might get a better picture.