Posted On: 07/15/2013 12:19:04 AM
Post# of 5115
"If Clarke wants to hold up the S1 for a measly 25k it will be a sad day. I can scrape up 25K if I wanted to."
The dollar amount is tiny. $25k is the intraday volatility on a moderate brokerage account. The principle of how one treats ones investors (shareholders or debtholders) is what you should be looking at. Maybe moreso in a brand new company since everyone invests in a good faith effort to help the start-up succeed.
If you loaned $25k and the loan was six months past due (pick a timeframe), it becomes hard later to return to the same debtholders and ask for $250k or $2.5M or whatever.
Its the old adage: "ones word is ones bond".
I say the above without questioning anyone's motivations or accusing anyone of anything since I'm not privy to any of the internal thinking.
The dollar amount is tiny. $25k is the intraday volatility on a moderate brokerage account. The principle of how one treats ones investors (shareholders or debtholders) is what you should be looking at. Maybe moreso in a brand new company since everyone invests in a good faith effort to help the start-up succeed.
If you loaned $25k and the loan was six months past due (pick a timeframe), it becomes hard later to return to the same debtholders and ask for $250k or $2.5M or whatever.
Its the old adage: "ones word is ones bond".
I say the above without questioning anyone's motivations or accusing anyone of anything since I'm not privy to any of the internal thinking.
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