A 'raise' is a huge signal that the company has operated successfully in at least some areas, and some 'intelligent people who should know better' are making a

A 'raise' is a huge signal that the company has operated successfully in at least some areas, and some 'intelligent people who should know better' are making a 'big risky bet' on the outcome. That someone is willing to put $X in likely an entirely unprofitable company is a very strong indicator that they are doing something right. Think of it this way: if 95% pitches don't get funding, it means that funding is roughly a sign the company is in the top 5% of companies at that stage. A round A raise means they are the best of those who got seed and didn't get to round A. A seed is for those who made it past Angel, because so many don't. And - 'money is not just money'. Money is the essential fuel, without which it's nary impossible to build a company. There are tons of unfunded companies that would be able to be considerably more successfull were they to have 'more money' - but they just don't fit some investors criteria, or they don't have the right fundraising skills.