Steve Benson

I have a question.

Mm-hmm.

I think that the rule is debt before equity if you can get it.

It's cheaper.

Equity capital is super expensive.

You can't get debt until you already have revenue.

Once you can get debt, you should get debt.

You stack equity on top of it.

But even if you just push the equity round back six months, you get a bigger valuation.

If you can push back the need by using debt...

And it's not just on the A round.

You can do the same thing on the C round.

If you can push your C round back because of debt, you want to do that.

So you basically always... I'd say rule of thumb, always debt before equity if you can get it and it's like not 30%, right?

Yeah, absolutely.

You could do...

if you had some first in a SaaS business, VCs hate giving you money before you have a million bucks in revenue anyway.

Right.

But it,

250k in revenue a year you can get a small loan right and so you've probably done a couple tranches before you before VCs even come in and then you do your VC round start spending that money a year after you get that round because it should take you two years before you raise again year after you get that round you stack on as much debt as you can and then hopefully push back the B round and you can do that every time and as you grow you can always bring in more money one last follow up so if things go south