[marcosdumay]

Except that if you sell or liquidate the company, you have to pay it all back before you can get any of the money.

So... It's completely equivalent to a low preference loan.

[gbear605]

Technically a VC with less than 50% control can’t do anything to you, so as long as you keep 51% and never sell or liquidate then it’s free money. In practice, they wind up pressuring you to do those things and then they get their money back.

[yard2010]

That's my point, when taking a loan you know upfront the cost, but when raising money you can't know what it really takes