There's a clear difference between raising a lot of capital and spending money foolishly. Just because a company finds it easy to raise large amounts of capital

There's a clear difference between raising a lot of capital and spending money foolishly. Just because a company finds it easy to raise large amounts of capital, doesn't mean that it's necessarily a bubble-type phenomenon. It could be the case, and probably is, that the company created a lot value and so was able to raise the money easily because of said value creation. Having a capital cushion is an effective strategy, especially if the market does shift and the bubble becomes self-fulfilling. The real issue is either around the need to quickly spend any raised capital or a valuation problem created for the next round. These are the things that management should focus on.