There has been a lot of money sloshing around the startup world for the past few years. Cheap and accessible capital has advantages: More founders get the opportunity to pursue big dreams and previously “unfundable companies” not only raise huge amounts of money, but some ultimately achieve unicorn status.
Discussions about the downside of this trend are usually related to systemic risks, like theperpetual bubble talk, but few are discussing the problem as it relates to founders — more capitalequals more risk. But who is bearing this risk, and what really is the downside? Sure, capital providers are taking this risk — but they aren’t the only ones.
Read Complete Article