I don't really know how venture funding works, so pardon my stupid question: Why did he need/want to raise $41m from outside when he sold his company for $850m a few years ago?
I asked this of an old boss of mine who cashed out perfectly fine and then raised money for his next business. It's not just about money - having people like Sequoia Capital on your team is more valuable than the money.
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I don't really know how venture funding works, so pardon my stupid question: Why did he need/want to raise $41m from outside when he sold his company for $850m a few years ago?
A) He probably didn't own very much of it at that point.
B) Using other people's money is always a lesser risk.
C) Raising big money = big PR ("social proof").
"Raising big money = big PR ("social proof")."
And of course the mafia always needs to be cut into any good deal and requires a "taste" and to dip their beak.
This is his business - the raising of money, not the production of high-quality long-term products...
I asked this of an old boss of mine who cashed out perfectly fine and then raised money for his next business. It's not just about money - having people like Sequoia Capital on your team is more valuable than the money.
The simplest answer: because he could.