Smartworks Founder Neetish Sarda talks about why it is better for his company to raise debt from public lenders over venture capital funds at the early stage.
While most startups end up diluting almost half of their equity in the process of raising just a few venture capital funding rounds, domestic coworking startup Smartworks has bootstrapped $20 million to run the company. After three years of operations, the company is now looking to raise its first external round which will be a mix of equity and debt.
In this episode of the Setting Sail podcast, Moneycontrol's Special Correspondent Priyanka Sahay talks to Smartworks Founder Neetish Sarda about why the company prefers raising debt from public lenders rather than venture capital funds at the early stage.
Smartworks is in talks to raise $40 million from institutional venture capital funds as well as debt firms, and Sarda says that the company's focus would remain on profitability rather than chasing valuations.