Yup, great questions! We considered a number of things: dividends, loans, buying back shares without raising money, debt. Dividends for a c-corp are taxed super high (big fan of paying taxes, but you end up paying something like 60-70% tax, not a good idea!). So raising extra cash with minimal dilution (2.5% for this round) was most efficient.
Right now, all money raised goes to company, then company buys back shares from early team members - investors still get preferred stock. We're not selling our common stock directly to investors - you're right, that'd be too complicated and not in investors interest.
Would love to answer more questions on this, keen to explain our full thinking!
Right now, all money raised goes to company, then company buys back shares from early team members - investors still get preferred stock. We're not selling our common stock directly to investors - you're right, that'd be too complicated and not in investors interest.
Would love to answer more questions on this, keen to explain our full thinking!