Can startup issue bonds?
Startups can technically issue bonds to raise capital, just as larger corporations do. However, it’s less common because startups often lack the established track record and creditworthiness bond investors typically seek. Instead, startups usually rely on equity financing, venture capital, or loans. If a startup were to issue bonds, the interest rates would likely be higher to compensate investors for the increased risk. Startups must weigh the costs and benefits of each financing method to determine the best fit for their business needs.
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