StartupsOct 30, 2019
Newqa771
Start up Debut financing indicates what ?
It's Series D startup in Bay area goes for debut financing and they have some money in the bank. Does this indicate failure ?
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JUUL jwCV70 Oct 30, 2019
It’s actually a sign of strength. They’re v confident they’ll earn enough to settle the terms of the debt, and they think the costs of interest and closing will be less than the value they create with the equity they saved
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qa771 OP Oct 30, 2019The earned revenue is 1/3 of the projected revenue. But they expect to double the revenue and match it to the projected revenue in next year. Am I missing anything here ?how do I evaluate their growth ?
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qa771 OP Oct 30, 2019People who built the foundation moved already and they recently hired for their replacement.
In general, founders prefer debt financing over venture capital because there is no equity dilution.
Are there any other ways to evaluate their growth?