Chapter
The Dark Side of Venture Debt
52:23 - 1:00:07 (07:43)
Venture debt may seem like a good option for startups looking to extend their runway, but in the current economic environment, founders are seeing harsh term sheets, foreclosures, and wipeouts of their businesses.
Clips
Start-up founders are increasingly taking out venture debts instead of raising series B or C rounds- which may prove costly with the flexibilities and restrictive covenants put in place by Venture capitalists.
52:23 - 54:41 (02:17)
Summary
Start-up founders are increasingly taking out venture debts instead of raising series B or C rounds- which may prove costly with the flexibilities and restrictive covenants put in place by Venture capitalists.
ChapterThe Dark Side of Venture Debt
EpisodeE114: Markets update: whipsaw macro picture, big tech, startup mass extinction event, VC reckoning
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
With the current state of the economy, venture debt is becoming more prevalent, but may not be the best option for struggling startups as banks are eager to collect debt and businesses may not have the runway they anticipated.
54:41 - 57:24 (02:42)
Summary
With the current state of the economy, venture debt is becoming more prevalent, but may not be the best option for struggling startups as banks are eager to collect debt and businesses may not have the runway they anticipated. Additionally, the return models on venture debt from the past may not be a good predictor of future returns due to a shift in mortality rates.
ChapterThe Dark Side of Venture Debt
EpisodeE114: Markets update: whipsaw macro picture, big tech, startup mass extinction event, VC reckoning
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The next two years will be rough for many companies, and founders must understand that things will never go back to as they were before 2021.
57:24 - 1:00:07 (02:43)
Summary
The next two years will be rough for many companies, and founders must understand that things will never go back to as they were before 2021.