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Why would they need to raise only 53M if they were profitable? They supposedly take in 100M a year. Are they spending a lot more than that???
by bayareaguy 18y ago
Why would they need to raise only 53M if they were profitable? They supposedly take in 100M a year. Are they spending a lot more than that???
- rms 18y agoit's free money... why not?
- gscott 18y agoI was thinking the same thing. I believe some people might have wanted to cash out there positions and it took outside money to do it.
- systems 18y agoOkay, there is a simple answer to this. Companies have various sources of financing, some considered better than others. They can take a bank loan ... They can buy on credit ... buy something, pay for it several months later is a canonical form of financing They can sell bonds ... They can offer shares ... There is normally competition between these forms of finance, and i heard banks usually try to offer the most competitive finance offer, so believe it or not banks loans are usually the best ... linkdln will probably have to work harder for those 53M than if they were a loan Finally, financing one firm from its own revenues, I believe is called auto-finance , or something like that, ... and beside the fact that they probably will and do take a portion of their revenues for self-finance ... they probably need more money to expand, and have seek other ways. I am not sure thought how auto-finance compare to other forms of financing, but i think its one of the best and least expensive .... i need to look more to it, you can learn more about this stuff from the books about finance etc ... :)