Theres a lot of conditions for this to be a good ideas, but - Typically you can grow at rate X, over time. If you raise enough money to buy someone else, you can grow at maybe 2X.
If you can raise money, at a low cost, which allows you to grow NOW, as opposed to grow later ? All things being equal, this is the better choice.
NB: This is a toy model, terms and conditions apply.
I would argue that any business which cannot survive that model is a business that should not exist. If you can't grow organically over time with your profits, chances are you aren't making anything actually useful or worthwhile.
…first of all, what about every business that isn’t software? Restaurants need to secure a lease and buy equipment. Manufacturing anything requires you to build a factory. Then, is it so far-fetched to imagine a software business that needs to write a bunch of code before it can start selling?
That’s pretty silly. Not every business can be started and reach profitability without upfront capital. Even if they did that doesn’t mean it’s bad for a company to take investments to scale faster. Economies of scale are a real thing
There’s such an enormous divide between tailoring a pitch deck to the investor to highlight the things they want to see and outright fraud I don’t even know where to begin with it.
