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he told me that the company still hasn’t spent most of its Series B funding yet They raised a $15M Series B that they haven't even burned through, and yet they
by viggity 12y ago
he told me that the company still hasn’t spent most of its Series B funding yet
They raised a $15M Series B that they haven't even burned through, and yet they've raised a $40M Series C and another $95M D round? That is crazy.
- dragonwriter 12y agoWhy is it crazy? If you expect to need a longer runway, it seems prudent to secure it before you are at the end of what you have.
- fweespeech 12y agoDocker is either going to find a way to be a major player in the VM/Container market or its going to crash and burn. Raising money when the VCs are willing to throw it at you is a good strategy when you know you'll burn through alot.
- darkarmani 12y ago> Raising money when the VCs are willing to throw it at you is a good strategy when you know you'll burn through alot. Yes. Doesn't it also indicate that you are giving a lot of the company up at the current valuation? ie: you are betting that a (near-term) future valuation is lower, so you want to lock in the money now.
- dragonwriter 12y ago> ie: you are betting that a (near-term) future valuation is lower, so you want to lock in the money now. Or, you know, you think the money now effects the long-term valuation such that, if the current owners are giving up x proportion of the company in the proposed round, with v0 as the anticipated future value of the company if the round doesn't happen and v1 as the anticipated future value if it does, the owners think that v0 < v1×(1-x)
- fweespeech 12y agoWell, you are hedging your bets. It is alot like buying a house imo.
- yesimahuman 12y ago"Why didn't anyone tell me I could raise less?" - last SV episode could be relevant here.
- pbreit 12y agoRaise when you can, not when you have to.