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Not if they anticipated raising more money later. Raising at $100M means they were setting themselves up for a down-round when they next raised (i.e. raising at
by kareemm 16y ago
Not if they anticipated raising more money later. Raising at $100M means they were setting themselves up for a down-round when they next raised (i.e. raising at less than $100M).
Unless they're extremely confident that they'd be valued at more than $100M in their next financing round, raising at less than $100M sounds like the smart, um, path.
- kmfrk 16y agoBut isn't this problematic, since they would have to raise more money later on, considering that they'll be diluting their shares a lot. Doing a $5M seed round at a $25M valuation after Google's offer is, what, a dilution of 20% total shares? I get that they can't do an evaluation that is higher than the next one, but they must really have recented taking the offer - perhaps for reasons of working at Google for four years for the $25M bonus.