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> Why do they need so much extra funding?! They've also (supposedly) been profitable since inception. It's likely that this round has a significant secondary,
by qeternity 5y ago
> Why do they need so much extra funding?!
They've also (supposedly) been profitable since inception. It's likely that this round has a significant secondary, which means they're just cashing out part of a profitable business.
- f311a 5y agoNot only profitable, but also bootstrapped business. They decided to go for VC money a few years ago.
- nlh 5y agoExactly. An increasingly common thing lately is what’s effectively a “private IPO”. That’s what this sounds like - liquidity for investors / staff, and ownership to a small cadre of professionally managed funds vs. the Wild West open markets.
- qeternity 5y agoFunny, "private IPO" is exactly what I said to someone I was discussing these types of rounds with. Going public has very tangible costs, but also massive intangible costs. Private markets are extremely frothy and keep ownership and control within an aligned group of investors. This can make all the difference in the world to management.