Nathan Latka
👤 SpeakerAppearances Over Time
Podcast Appearances
I mean, are you happy with that?
And I'm obviously, you know, I run a debt fund.
So anytime I have the opportunity to talk to an early stage founder like you about debt, I do it.
Can you tell me how you structure debt on this business with $5 million ARR?
Is it a term loan?
Is it a 13% interest rate?
Are there warrants?
How do you structure it?
With warrants, right, Jared?
So to sum all that up, you're at $5 million of revenue.
You keep your leverage under 10% of revenue.
So you have less than $500,000 of debt on the balance sheet today.
That way that debt is structured is about a 10% interest rate.
But the lender also has under 10% sort of an equity position in the company as well.
Jared, wrapping up here, if somebody offered you 10X your ARR, so $50 million all cash upfront today to buy the business, do you sell?
Yeah.
Do you have their phone number?
Guys, there we have it.
Jared, yay, man.
Check him out.