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They raised $250m 2 years ago and have tripled their workforce since. Now they're losing money of course but why do they need to IPO if they raised so much mone
by drexlspivey 3y ago
They raised $250m 2 years ago and have tripled their workforce since. Now they're losing money of course but why do they need to IPO if they raised so much money recently?
- civilitty 3y agoEveryone wants to cash out before the ship sinks.
- rossriley 3y ago2000 employees at an average cost of 200k / year is a $400m a year burn rate. If they're not breaking even with revenue then that money starts to run out quite quickly.
- B1FF_PSUVM 3y ago> why do they need to IPO if they raised so much money Venture capital funds are for a limited time - e.g. five years. At the end of the time, the fund is liquidated - the companies are either sold, or closed down. They can sell to another round of VC funding, sell to a competitor (who wants to "acquihire" the team), or by IPO.