Ask YC: Debt Financing for startups e.g.: Facebook, Blekko?

1 point

18 years ago

Why do startups use debt financing, why is it so popualar, other than the fact that startups don't need to part with equity?

and in the couple of cases I have seen it, it's mostly for hardware/ infrastructure related stuff? why is that?

-- Blekko: http://www.techcrunch.com/2008/05/14/stealth-search-engine-blekko-gets-money-from-marc-andreessen-softtech/

-- Facebook: http://www.businessweek.com/technology/content/may2008/tc2008059_855064.htm

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