Sure for like $5-10MM, but no one is landing $100B cash in a startup's bank account
reply$100B isn't a startup. And if there's a $100B deal, you better believe the cash is there. Case in point - Netflix/Paramount wanting to buy WB. Or the $44B that Musk had to raise to buy out Twitter shareholders.
replyBoth your examples are purchases. Musk had to raise actual capital to buy Twitter because the people getting the money were taking it and walking away.
replyFunding doesn't work like that. Investors are giving you money as part of a longer-term deal where they stick around.
This was already common in tech for Series C+ fifteen years ago when I raised a round. Once you’re talking tens or hundreds of millions, almost everyone wants milestones and tranches instead of giving all the money up front.
replySame. I know $100m+ range arrives in the bank account. Don’t know more than that. But for that sum, I know it routinely just arrives.
replyObviously this is 1000x as large so I make no claims to knowing that sum. But it’s routine for startup funding to arrive in bank account.
Both of CFS B rounds were cash, in recent years, and each in the range of "low billions". Sure another 2 orders of magnitude is another story, but so is selling hope. I'd say the latter is the thing that is unique here.
reply