Debt financing isn't just about avoiding a "down round." It's also about maximizing the upside value for current stockholders. There is some maximum possible

Debt financing isn't just about avoiding a "down round." It's also about maximizing the upside value for current stockholders. There is some maximum possible business value of Facebook, no matter how much capital they take in. The founders hope to reach that value. If they issue more stock, even if they take in the same valuation for that stock, that final maximum value is being divided among more shares. Each shareholder's upside is limited as a result. The lesson: -- equity is dilutive for growth companies, even if it's priced appropriately --