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The Pros and Cons of Filing Business Bankruptcy

The Startup Magazine

When the court and Chapter 7 Trustee find from the information filed that the business cannot continue to operate and meet its financial obligations, the business’ assets are liquidated for the benefit of its creditors. The business is then discharged of any debt in excess of the value of its assets, and the business ceases operations.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. By definition, companies that receive venture capital cannot fund their businesses from operations, and thus need to seek outside capital.