Let’s mug a startup founder 15 years ago
Also, don't forget that if the company goes into liquidation, debt gets preference to equity holders when it comes to distributing assets. So for all the "trust me" rhetoric, it remains theoretically possible that the creditor (ie the "incubator") could call in the loan, and if the cash is not at hand, they could force the company into liquidation. They would then end up with title to any IP, contracts or any other company assets.