One of my favorite bloggers is Bill Gurley of Benchmark Capital. He used to write a great column in Fortune Magazine which I miss. Today he writes about how stupid it is to be funding startups with debt capital. He is exactly right.
Anyone who has been involved in early-stage companies knows that it is hard enough to get to cash flow breakeven with no debt. Our government has decided the normal rules don’t apply and have loaned two money-losing companies almost half a billion dollars of our money. Could someone please explain why?