Startups & VC

Dear SaaStr: Should I Take On Venture Debt?

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The article discusses whether startups should take on venture debt, using Divvy Homes' billion-dollar exit where founders and employees received nothing due to heavy debt as a cautionary tale. It highlights risks such as dilution through warrants, restrictive covenants, maturity crises, and misreporting cash positions, while also outlining scenarios when venture debt can be beneficial if managed carefully.

Read the full article at SaaStr

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