Corporate Law
Author: Jesse Ahuja & Andrew Hennigar
Unless you’re able to achieve immediate cash-flow, have minimal expenses, or are independently wealthy, at some point your company will need financing. Generally speaking, there are good reasons for a company to issue equity and equally good reasons to issue debt. We’ll save those for another post. Today we’ll review the potential problems with both. For the purposes of today’s discussion, let’s assume your early-stage company is incorporated and organized but is not cash-positive, has no real assets and has exhausted its bootstrapping funds.