Abstract on my commentary:
On the other hand, making loans more accessible to startups comes with its own risks as well.
Credit-assessment criteria are commercial decisions by banks that take into account the high failure rate of startups.
But “VCs are sophisticated investors trained to accept high forms of risks. So equity fund-raising, though an expensive form, is still acceptable to the level of the risk,” said Christopher Quek, managing partner of VC firm Trive.
Read the full article here.