Why pay for a loan with equity when you can pay cash? The interest rate on equity payment is exponentially higher than it is for cash.
Plus, if you already have attractive traction, why do you need the "premium features" a VC offers versus a bank which are extra experience, some networking effects, and maybe some insider info on acquisition opportunities? So you can be forced into expedited aggressive growth and turn into WeWork or make less money if the company is acquired? No thanks, the business is already proven and working!
Traction for VC money makes no sense to me.
...Unless you secretly have ZERO intention of ever selling and just want to pocket some play money for the business.
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Seriously!
Why pay for a loan with equity when you can pay cash? The interest rate on equity payment is exponentially higher than it is for cash.
Plus, if you already have attractive traction, why do you need the "premium features" a VC offers versus a bank which are extra experience, some networking effects, and maybe some insider info on acquisition opportunities? So you can be forced into expedited aggressive growth and turn into WeWork or make less money if the company is acquired? No thanks, the business is already proven and working!
Traction for VC money makes no sense to me.
...Unless you secretly have ZERO intention of ever selling and just want to pocket some play money for the business.