A COMMENTARY ON THE GENERAL PHENOMENON OF BEST-IN-CLASS GROWTH COMPANIES RAISING SUCCESSIVE ROUNDS AT HIGHER AND HIGHER VALUATIONS

Summary from the TLDR Founders newsletter

Most of the financing for best-in-class growth companies raising successive rounds at higher and higher valuations makes no sense. Growth equity capital is very expensive. Companies at this scale typically deploy a substantial majority of their expensive equity dollars into highly predictable, relatively low-risk GTM initiatives. The capital is being used inappropriately, and these companies should finance their GTM investments differently.