So you have $125M in your bank account, you're fcf+ and don't need capital but decided to give up your equity for another $45M. so now you have $170M in your bank account yielding 0%, for which you paid the cost of your equity, which I can assure you is in the triple digits... because you wanted a techcrunch article for prospective customers and employees, which you could have spent <$10m of the cash that you didn't need for? And 1.4% might seem like little dilution, but might be worth doing the math of the cost on a $$ basis? If y’all do well, which I’m sure you will, the cost will not be trivial.
A suggestion: if you want to really show progress and get a lot of press, do a buyback from employees/early investors instead. Signals to the world the level of confidence you have in your own stock.
A suggestion: if you want to really show progress and get a lot of press, do a buyback from employees/early investors instead. Signals to the world the level of confidence you have in your own stock.