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A comment on Don't Take VC Funding – It Will Destroy Your Company. Parent comment

Re:Don't Take VC Funding – It Will Destroy Your Company by eastdakota on Sunday July 09, 2023 @12:03PM (#36655648)
You still eventually need to return money to your private market investors at some point. So that just pushes the outcomes out later. Or, again, in the super rare case that you’re generating so much case that you can pay investors back at a rate of return they’re happy with with dividended cash flows.
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Re:Don't Take VC Funding – It Will Destroy Your Company by j45 on Sunday July 09, 2023 @12:08PM (#36655688)
I meant the ‘super rare’ case.

It’s not so rare in some industries like oil and gas, etc where cashflow is the purpose of the work.

Add software that does what nothing has before.. and the table turns.

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Re:Don't Take VC Funding – It Will Destroy Your Company by eastdakota on Sunday July 09, 2023 @12:26PM (#36655857)
Agree.
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Re:Don't Take VC Funding – It Will Destroy Your Company by j45 on Sunday July 09, 2023 @12:54PM (#36656143)
The first time I saw how customizable a PE deal was, and how you could limit how much of a company you give away with how little of the PE you end up drawing by becoming profitable, I was surprised why it isn't more common in tech.
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Re:Don't Take VC Funding – It Will Destroy Your Company by esafak on Sunday July 09, 2023 @04:31PM (#36658562)
Can you recommend any books on this subject?
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Re:Don't Take VC Funding – It Will Destroy Your Company by JumpCrisscross on Sunday July 09, 2023 @12:43PM (#36656025)
> still eventually need to return money to your private market investors

If that’s what you pitched them. Most businesses are private. Most rely on outside funding. Most of them never exit, and are never expected to.

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Re:Don't Take VC Funding – It Will Destroy Your Company by ymolodtsov on Monday July 10, 2023 @04:17AM (#36663452)
A lot of VC funds wouldn't accept your dividends because this type of income might create additional taxation and reporting obligations for them.
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