I've been involved in many startups, and this type of fundraising is not common, or at least it wasn't common before a few years or so ago

The whole concept of talking about "runway" is basically calculating how much cash in the bank, that is actually in your bank account, will last. And this arrangement is different, as there are contingencies. In the past, VCs would just give you money in a particular series, and then if your business did well, they'd eventually give you more money in a later series. But it wasn't like they announced it all up front in, say, a Series A, but a big chunk of the money would only be delivered if you met milestones.

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throwup238 2 hours ago | parent | next [-]

This was already common in tech for Series C+ fifteen years ago when I raised a round. Once you’re talking tens or hundreds of millions, almost everyone wants milestones and tranches instead of giving all the money up front.

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ewhanley 3 hours ago | parent | prev | next [-]

Sure for like $5-10MM, but no one is landing $100B cash in a startup's bank account

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prasadjoglekar 3 hours ago | parent [-]

$100B isn't a startup. And if there's a $100B deal, you better believe the cash is there. Case in point - Netflix/Paramount wanting to buy WB. Or the $44B that Musk had to raise to buy out Twitter shareholders.

	▲	akerl_ 3 hours ago \| parent [-]
		Both your examples are purchases. Musk had to raise actual capital to buy Twitter because the people getting the money were taking it and walking away. Funding doesn't work like that. Investors are giving you money as part of a longer-term deal where they stick around.

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renewiltord 3 hours ago | parent | prev [-]

Same. I know $100m+ range arrives in the bank account. Don’t know more than that. But for that sum, I know it routinely just arrives.

Obviously this is 1000x as large so I make no claims to knowing that sum. But it’s routine for startup funding to arrive in bank account.

	▲	willis936 2 hours ago \| parent [-]
		Both of CFS B rounds were cash, in recent years, and each in the range of "low billions". Sure another 2 orders of magnitude is another story, but so is selling hope. I'd say the latter is the thing that is unique here.