This is an insane amount of dilution for a late stage business to take. Flexport is an outwardly incredible operation run by some of the most impressive people in the world, but it’s hard to understand how anyone other than late-stage investors benefit.https://twitter.com/typesfast/status/1098629369268850688 …
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“I don’t question the value of raising capital” was a generalized statement. My first comment was specific to flexport and hyperbole, thanks. The point is that I’d rather be an early employee/investor of a company with a different degree of capital efficiency. See Stripe Series C
I'm trying to reconcile "I’m not questioning the value of raising capital b/c it unlocks a magnitude of opportunity that far outweighs the 25-30% incremental dilution" with "it’s hard to understand how anyone other than late-stage investors benefit."Those seem to be strange businesses to compare. A few key differences between freight & credit card processing: gross margins, 747s, warehouses, a 90%(?) non-engineering workforce. It might make more sense to say: “if I were an investor, I’d invest in pure software companies.”