[louisswiss]

> You may as well also include the effective interest rate on every VC investment that returns 50x or 100x their investment and say "Woah what a high interest rate. Should have used a credit card." Yeah,

This. The author seems to completely miscomprehend/discount the risk involved for both parties in his calculations.

It's important to remember that the payback is based on profit, not revenue. The author does note this, but a lot of his reasoning around the founders' hypothetical motivations only make sense if you assume the reverse is true.

For example:

> While much shorter than a mortgage, eight years can feel like a long time to owe money, especially in startup land, where 1 year can feel like a decade.

This misses the point because you don't really owe money like a mortgage. With a mortgage if you don't pay it off today, lose your job and can't make future repayments, you could lose your house.

With this SEAL, if you don't pay back the investors today and suddenly can't afford to pay anything next month, there are no negative consequences. You won't be fired, lose your house/additional equity or end up paying back more (eg due to interest).