Chapter 4

Why is money you never repay the most expensive?

Tiền không phải trả lại, sao lại là tiền đắt nhất?

The chapter's question

If I sell part of the company, what do I gain and what do I lose?

Big idea

Equity does not have to be repaid, and that is exactly where it is most expensive.

In this chapter

  1. Part 4.1

    What Dilution Means

    After this round, what percentage do I still hold?

  2. Part 4.2

    What Investors Get

    Besides shares, what rights do they get?

  3. Part 4.3

    Where Valuation Comes From

    What is the valuation number based on?

  4. Part 4.4

    When Equity Beats Debt

    In which cases should I not borrow at all?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Borrowing and Raising is free to read right here.

Read in Conan School

Chapters of Borrowing and Raising

  1. 1.Am I borrowing to grow, or to patch a hole?
  2. 2.Does a low interest rate mean a cheap loan?
  3. 3.Do lenders fund your idea, or something else?
  4. 4.Why is money you never repay the most expensive?
  5. 5.Does the hard part start after the loan is signed?