Firehose #158: 🍰 Capital stack. 🍰

Debt is going to finally come to the tech industry. We can hate it, we can criticize it, we can raise the alarm about how dangerous debt is to the VC model we’ve honed to perfection over decades. Or we can see this moment for what it is: a turning point into a new deployment period for software and the internet.

The biggest risk exists for companies that have raised at high valuations but can’t get to cash flow positive on the money in the bank and thus will need to raise again in the future.