Parsely says no to $40 million, yes to $6 million, why not just get a bank loan?

(written by lawrence krubner, however indented passages are often quotes). You can contact lawrence at: lawrence@krubner.com, or follow me on Twitter.

It’s interesting that Parsely said yes to $6 million. They are basically profitable, but they need some money for expansion. In all previous eras, they would have applied for a bank loan. That is what profitable companies do when they want to expand. But somehow, we now have a business culture where it seems to make sense to sell equity to finance expansion, even when profitable.

I am not for or against this, I’m simply noting how much this is an example of the zeitgeist. This is where we are at right now.

Post external references

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    https://blog.parse.ly/post/6282/why-we-said-no-vc-money/
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