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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking | Steve Blank

What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking | Steve Blank

But startups require money upfront for product development and later to scale. Traditional lenders (banks) think that startups are too risky for a traditional bank loan. Luckily in the last quarter of the 20th century a new source of money called risk capital emerged. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash.

Source: What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking | Steve Blank