VCs often want both equity and debt - equity because it gives them an ownership interest in the business, debt because they will be repaid more quickly.

Question

Quizplus · Accepted Answer

VCs may seek a combination of equity and convertible debt in a startup. Equity gives them ownership and a share in future profits, while convertible debt can be repaid or converted into equity, offering a quicker return on investment if the startup performs well.

VCs Often Want Both Equity and Debt - Equity Because