A high mortality rate among startups is to be expected as a natural mean reversion after a period of excess.

“we have to go through what's called mean reversion, right? We have to go back to the historic statistical average which means that a 50 to 60% mortality rate seems pretty reasonable. By the way in the dot-com bubble, that's what we went through.”

Venture debt is an unfavorable financial instrument for startups that creates dangerous leverage and inflexibility.

“I don't understand what I've never understood the venture debt model or really how it works. I feel like it's a category that doesn't make any sense.”