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I'm curious, what reasons would lead a company with $100M ARR to seek a funding round for close to their ARR? Are there no other avenues for securing capital th
by JPWH 8y ago
I'm curious, what reasons would lead a company with $100M ARR to seek a funding round for close to their ARR? Are there no other avenues for securing capital that are close to you ARR?
- lojack 8y agoThere might be, but I think the real question should be closer to: "Are there no other avenues for securing capital that are close to your ARR with costs as low as you'd get during a new funding round?" I don't have an answer to your question, but access to cheap capital is just one reason why you may want to fundraise when the money isn't necessary.
- tguedes 8y agoProbably cheap capital in case the markets turn down. It's expected that the venture capital money will dry up a bit and the fed raising interest rates means that taking loans will be more expensive. I've seen a lot of VCs say if you can take it now, take it.