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But why do you want them in your business and will have to cash them out someday? Why not organically grow and own your business?
by jeffreygoesto 1y ago
But why do you want them in your business and will have to cash them out someday? Why not organically grow and own your business?
- rco8786 1y agoBecause that’s not feasible for our product. It’s the whole reason investors exist in the first place.
- mystified5016 1y agoBecause that's simply not how business works
- hluska 1y agoNot all businesses can survive that model.
- bigstrat2003 1y agoI would argue that any business which cannot survive that model is a business that should not exist. If you can't grow organically over time with your profits, chances are you aren't making anything actually useful or worthwhile.
- rco8786 1y agoThat’s pretty silly. Not every business can be started and reach profitability without upfront capital. Even if they did that doesn’t mean it’s bad for a company to take investments to scale faster. Economies of scale are a real thing
- hock_ads_ad_hoc 1y agoThey have to seek vc funding to grow because one of their competitors will. If they don’t, they will lose the market to the vc backed hyper scaler.
- msteffen 1y ago…first of all, what about every business that isn’t software? Restaurants need to secure a lease and buy equipment. Manufacturing anything requires you to build a factory. Then, is it so far-fetched to imagine a software business that needs to write a bunch of code before it can start selling?
- intended 1y agoTheres a lot of conditions for this to be a good ideas, but - Typically you can grow at rate X, over time. If you raise enough money to buy someone else, you can grow at maybe 2X. If you can raise money, at a low cost, which allows you to grow NOW, as opposed to grow later ? All things being equal, this is the better choice. NB: This is a toy model, terms and conditions apply.