The practical difference is no dilution. You get to keep all of your company and still have capital. It's no different than Nike selling $300 million of shoes

The practical difference is no dilution. You get to keep all of your company and still have capital. It's no different than Nike selling $300 million of shoes to a sneaker flipping hedge fund. It works, everyone agrees, everyone's liquid, they like liquidity. Everyone spends a fraction of the same amount on marketing and gets to attempt selling the product at a nice profit. The development organization is still capitalized either way, and still owns a ton more shoes to sell whenever it wants.