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> why would they need to raise money? The thinking is that the more a hot company can raise, the longer they can stay public. In the current cycle, IPOs are m
by gkanai 8y ago
> why would they need to raise money?
The thinking is that the more a hot company can raise, the longer they can stay public.
In the current cycle, IPOs are more rare than in previous cycles (partly because FAANG are acquiring more companies and partly because companies are waiting longer to IPO) so having more cash on hand gives the company that much more runway.
- acconrad 8y agoDid you mean private? So even if they are a market leader, give them more cash? I get why Uber does it because they have serious commoditized competition with Lyft, but Slack does not seem to have even a close 2nd place.