Some companies raise money even if they don't really need it. Case in point, Evernote has over $10m/year in revenue and a lot of their venture capital still in the bank, yet they decided to go for a big round of $20mil for a total of almost $30mil. They want to expand. The same is true for Twitter.
Whether the model works out for them or not is yet to be seen, but I don't think the majority of the people care enough about the bugs and uptime problems to the extent they will leave the platform or come back less.
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Some companies raise money even if they don't really need it. Case in point, Evernote has over $10m/year in revenue and a lot of their venture capital still in the bank, yet they decided to go for a big round of $20mil for a total of almost $30mil. They want to expand. The same is true for Twitter.
Whether the model works out for them or not is yet to be seen, but I don't think the majority of the people care enough about the bugs and uptime problems to the extent they will leave the platform or come back less.
It sounds like they do need the money if they can't expand with $10MM/yr in revenue.