“Equity funds are operating business, our team, our employees, and all of that stuff. Debt is what goes behind our charge card. When you spend on a Rho card, a couple of days later, that winds up in a special group’s vehicle, which is a warehouse facility. This is fairly standard for the credit card industry. It wouldn’t make sense to finance that on a balance sheet. It would not be a use of equity capital but investor capital. It allows you to scale much faster and gain access to infinite capacity, which is what we did.”
