Technology Made Simple • 39 implied HN points • 09 Apr 22
- Equity Financing: Tech companies often use equity financing to raise initial capital by selling ownership of the business to investors. This allows for flexibility and growth opportunities, but founders may have to listen to investors and risk losing control.
- Debt Financing: Another option for raising money is through debt financing, where companies take loans instead of selling ownership. This can lead to slower initial growth but ultimately makes the founder the sole owner of the company once the debt is paid off.
- Financial Structures: Understanding basic financial structures in tech is crucial for career success. Variants like non-voting stocks and LLCs can help mitigate risks while maximizing profit potential.