Thoughts on startups by investors that
fund them & entrepreneurs that run them

Do venture capital firms or private equity funds offer debt financing for startups?

The direct answer to your question is NO, VC and PE funds do not provide debt financing for any companies. Their entire business model is based on investing in companies that can potentially offer very high returns. For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service.

But the bigger question is that, perhaps because of language issues, your question seems contradictory. If you already have a startup, why do you believe it will take two to five months to write a business plan? That would typically be done before you start the company. And if you are still at the startup stage, how do already have global operations in a dozen countries?

*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *

Written by David S. Rose

user David S. Rose Founder and CEO,
Gust

David has been described as "the Father of Angel Investing in New York" by Crain's New York Business, & a "world conquering entrepreneur" by BusinessWeek. He is a serial entrepreneur & Inc 500 CEO who chairs New York Angels, one of the most active angel investment groups. David is also CEO of Gust.

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