Crunchbase News: The Startup Debt Dilemma: When Leverage Helps And When It Hurts

In this article, we discuss the growing use of debt in startup financing, examining when it can be a strategic tool for growth and when it becomes a dangerous liability. We cover the differences between early-stage and growth-stage debt, the importance of recurring revenue, the risks of personal guarantees, and how overleveraging can limit future options. The goal is to help founders, investors, and advisors better evaluate if and when debt makes sense in today’s funding environment.

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