>Assuming the investment works out, it will pay for the cost of borrowing over time.
In other words, because the company is deciding to take on more risk, hoping for better rewards.
I'm recently debt free (I don't own a house), with car, credit cards, loans, everything paid off. It's how I could afford to quit my job and bootstrap my own company last month. Not just financially, but mentally, with buy in from my wife even though we have a four month old baby. Companies don't have four month old babies, and CEOs usually get rewarded nicely when the risks they take with other people's money work out, so the calculations are different for companies than for individuals.
I agree that it's not the same for people as it is for companies. And it's ironic that the rash decisions (read high risk) taken by companies often affects individuals.
Being debt-free is a good financially and mentally, as you say. It's interesting that I am also in a similar situation as you -- I paid off all loans and then could afford to quit my job to bootstrap my company. We're in the same boat, and I'm enjoying every bit of it.
Awesome, congrats on the bootstrapping! Yeah, I agree, many investors have a higher tolerance for risk than someone who's putting the livelihood of their family at stake.
In other words, because the company is deciding to take on more risk, hoping for better rewards.
I'm recently debt free (I don't own a house), with car, credit cards, loans, everything paid off. It's how I could afford to quit my job and bootstrap my own company last month. Not just financially, but mentally, with buy in from my wife even though we have a four month old baby. Companies don't have four month old babies, and CEOs usually get rewarded nicely when the risks they take with other people's money work out, so the calculations are different for companies than for individuals.