The Path To Profitability: Ignore Your Debt
from the one-way-to-do-it dept
VCs today love to talk about how companies need a "path to profitability" to be fundable. It seems that more companies are taking the Yipes approach to profitability: raise lots of money, then declare bankruptcy, and wipe your debt off the books. It's a plan that Covad seems mighty proud of. They're touting how they did so well last year because they simply erased $1 billion in debt. Wouldn't life be easier if we could all do that? Take on over $1 billion in obligations. Screw up your business, spend a couple months in bankruptcy and emerge owing nothing. What a deal.
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