alt Hacker News"So now the VC lends the money from the bank"
"lends" -> "borrows", right?
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axus • last Thursday at 7:06 PM
If hours of preparation for college testing taught me anything, it's the difference between lend and borrow.
"So now the VC lends the money from the bank"
"lends" -> "borrows", right?
If hours of preparation for college testing taught me anything, it's the difference between lend and borrow.
No dude. Read it again.
The VC lends (the money from the bank) which the vc borrowed, to the clinic.
They are a sort of middle man. It the clinic is on the hook to the bank and the Vc takes fist cut before playing the bank.
Eg. The vc only risked the company they were buying, and gets paid first.