00:00:00
I hate this business. I think venture debt is like the worst vulture-like business in Silicon Valley.
00:00:04
>> Right. I've always hated when founders take on venture debt. Part of it is that
00:00:08
founders forget that they have to pay it back. They treat it like venture capital
00:00:11
and they forget about that and then they get surprised. But the other thing I've
00:00:15
never liked about it >> is it makes you more fragile. It basically subjects you to a bunch of
00:00:20
business covenants and it makes it harder for you to do an abrupt shift in your business because now you've got a
00:00:27
bank looking over your shoulder and they want to make sure they get paid and they
00:00:30
have to review your financials and all the rest of it. And to your point Jake, the companies that have free cash flow
00:00:35
right now are the ones that have the most maneuverability. I hate taking away maneuverability from founders and that
00:00:42
is what debt does because it subjects you to a fixed schedule of payments. And so this is always a thing to remember
00:00:49
whether you're a business or you're an individual. When you put on that debt,
00:00:53
it makes you more vulnerable to big disruptions in the