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Venture-debt financing is not anti-entrepreneur
May 27, 2007 /
As I have written here before, it is common for entrepreneurs to offer to their investors preferred stock in their new ventures to raise capital. Preferred stock terms have strong protection for investors and in the end no debt is put on the company.
Venture debt is another form of financing companies. The investors loan money to the company instead of buying an ownership stake.
By John E. Richards
Brigham Young University
Full Story: http://deseretnews.com/dn/view/0,1249,660223929,00.html
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