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I ruined my credit. Will VCs count this against me?
25 points by anon_founder11 on July 10, 2012 | hide | past | web | favorite | 8 comments
(Throwaway account). I have been working on my bootstrapped "startup" for almost 10 years. During those 10 years we have had many ups and downs. We switched business models 3 times - and each time we did this we cut off all revenue streams and started over. The result was personal financial disaster (when I knew we were going to cut off revenues, I took out as many credit cards as I could so my family and I could live). The good news is that our 3rd pivot actually worked out really well. We are now doing about $1M in revenue and growing pretty fast. I am now making decent money ($8-10k/mo gross)...but not enough to pay back all of my debts (I don't even know where to start). My wife has her check garnished (because of my issues) but I have been able to avoid it.

Basically, I decided a long time ago that if the ship went down I was going down with it. I also decided that I would never let that happen...kind of the classic "you don't lose if you never quit" mentality. I have worked my arse off for 10 years and persevered through it all. I have been able to compartmentalize my credit problems and drive my company forward.

I would like to hear from some people "in the know" if my credit issues are going to hurt my chances of getting my company funded. We are ready to take it to the next level and I am afraid that my credit score may be an anchor.


PG, that is a great response; here's a followup: How can he use his company's good standing to restore his credit, if at all?

Or is it just the typical path for him?

Assuming he is doing $1mm in revenues and VCs are interested in investing, is there anything that this investment can be leveraged for to restore credit?

Isn't the whole point of the company being a separate legal entity that its credit cannot affect yours and vice versa?

^^ most epic response ever.

Thanks pg!! You just made my day!

This is a great question, and it is nice that it's easily answered.

Probably the best reply/answer you could have hoped for!

This is an amazing interview with Chris Sacca and Kevin Rose: http://www.youtube.com/watch?v=Q6NpHbMFaQ8 Chris talks about being $1 million+ in debt at one point. Keep going!

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