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Do we know that they need to raise and are not sustainable? I don't think them raising is evidence of either.
by austhrow743 1y ago
Do we know that they need to raise and are not sustainable? I don't think them raising is evidence of either.
- dh2022 1y agoWhy would they raise money if they do not need? Raising money dilutes existing shareholders - who are probably not too happy about it.
- troyvit 1y agoI worked at a place once where the CEO basically said that it's a lot easier to raise money when you don't need it than to raise it when you do. The US economy is looking pretty weird with a bunch of conflicting predictors. Maybe they're buffering for a recession.
- naijaboiler 1y agoIts always true. Whether you are a start up or an individual. People throw money at you when you least need it. But when you do need it, they give all types of hassle
- Temporary_31337 1y agodepends on who is making a decision and how exactly is the funding round structured - for some investors, diluting other shareholders is actually a good thing. For existing employees, if they get an option to partially cash out now is probably better than waiting indefinitely for an IPO etc