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Comment by hamhamed | Hacker News Reader

I don't know about abundance. Maybe Aaron has confirmation bias being around the industry so closely. Or maybe other founders here can tell me otherwise. From my side, I can't vouch for an over abundance of capital.

It's been a year we're trying to close our round, missing 350k from the $1M round and yet still growing 30% MoM. Yes covid fucked our business in a sense, and we got hit since March - but we remain ever so bullish esp given our sustaining growth.

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I made a comment further down that your comment jives with. It’s the idea that abundant capital doesn’t necessarily mean it’s evenly distributed through the various stages. In particular, seed stage seems not to have seen the effect yet.

Hard data on aggregate seed funding through the years would be interesting.

Also - hang in there! 30% MoM is no joke, sounds like you’ve done one the hardest things (made something people want).

That is the access problem he talks about in the notes. He is right. All the number that we see from the industry shows that there is a fuckton of capital. But it is really badly distributed. That is probably a far bigger problem right now and one that need to be solved if this industry want to maximise impact.

There are interesting things happening in that space, but they are still at the fringe.

Why do you need VC having such growth rate? Get a loan. If you're at least 95% sure that your business will work out (and the growth rate strongly indicates that) why would you want to pay with equity?

I honestly don't know why debt for growing companies is vilified. People will literally give you their money. From the perspective of the borrower the lender is absolutely insane because he could have spent that money in a way that would yield superior returns compared to giving you a loan. Instead you get to extract that value yourself.

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