I noticed that student loan debt is almost never mentioned in articles discussing the acquisition of angel funding and funding from VC's. I have a hard time believing that investors will invest in those who have insurmountable debt to deal with upon graduation (or any student loan debt at all), despite how good an idea or product will be.
As a person who will come out of school with debt, considering my interests in pushing out a product I'm working on, I fear that my debt will play a major role in finding any financial backing. Why would an investor invest in a product that's being controlled by a person who is in debt?
I've read, on numerous occasions, that VCs/angels look for people who are hungry and competent (among other things, obviously). If that's true, then sure, student loan debt might play a positive role because a graduate might be so eager to get rid of their financial burden that they take the product to remarkable heights, leading the investor to large returns. On the other hand, student loan debt might get in the way of a graduate's entrepreneurial priorities. In that case, of course, it wouldn't be advantageous of the investor.
So, is it highly improbable that an investor would throw their money into a product/company produced by a person with student loan debt? Is it even a factor, usually? I'm assuming it does, especially since the debt is so common. Is a recent graduate better off footing it on their own, resorting to mediums like KickStarter?
So, is it highly improbable that an investor would throw their moneyNo
into a product/company produced by a person with student loan debt?
Is it even a factor, usually?Probably not.
Why would an investor invest in a product that's being controlled by aBecause, unless the debt is from an addiction or problematic behaviour, there's no relation between the personal debt and the professional performance. Especially when it comes to something as ordinary as student loans.
person who is in debt?