[Aeolun]

> When you start a business there’s an expectation that you’re probably not taking a paycheck from it for a few years while you try to attract customers to provide steady cash flow.

I think this is only true for a newfangled SF business.

Traditional business gets a bank loan, has a business plan, and pays salaries from the start (including to the owner).

[bruce511]

I would have said exactly the opposite. Newfangled SV businesses have all that investor cash to pay salaries, whereas bootstrapped need revenue, the sooner the better.

Make no mistake, the only reason a company closes is because they run out of cash. Old-style businesses have been doing that forever. SV businesses do the same when that "next round" fails.

Which leads me to conject that a VC business is just a bootstrapped business, where VCs are the customer...

[brightball]

What are those loans secured against?

[d3ad1ysp0rk]

Bingo. As someone who started a brick and mortar business that is tied to our home, the financial failure would have very real impacts on us, regardless of having an LLC.

[Sevii]

The owners assets.