Venture debt is like a delicious sandwich that only costs ten cents, but occasionally explodes in your face. If I were running a startup, I don't think I'd ever take it.
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If you can avoid it, sure. http://Justin.tv took significant venture debt from SVB during our A’ round, and I’m pretty sure we would have run out of money without it (bandwidth costs were crazy). Definitely risky, but sometimes risk is worth taking.
Definitely, if you have a choice of starving or eating a sandwich that might explode, you eat the sandwich.
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The tricky part is you decide to buy the sandwich a year+ in advance of exploding and / or starving.
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Surely the sandwich would have gone off by then? Wait...we're talking about actual exploding sandwiches here right?
End of conversation
New conversation -
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New startup idea: exploding sandwiches
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