It's not necessarily money they'll have to pay back, it can be investors getting a share of the company (and existing investors getting their share diluted).
Sometimes they might want to raise to grow faster than your competitors. Not sure about their market, but sometimes there is a "winner takes all" market where the winner isn't established yet. So it's a race to grow fast enough to be the first to get to that network effect.
Look at online videos for example. Youtube has a near monopoly, while Dailymotion, Vimeo and others are just getting scraps. If your market hasn't settled yet, even if you're already established and growing, getting investors money could mean the difference between becoming Youtube and becoming Dailymotion.
The devs of FloatPlane considered entering that market as soon as the exit was announced, but given the development time and the fact that most of the content creators migrated to other platforms, and therefore they would be very late.
The devs of FloatPlane considered entering that market as soon as the exit was announced, but given the development time and the fact that most of the content creators migrated to other platforms, they would be very late and therefore it is not a worthwhile endeavor.
Sometimes they might want to raise to grow faster than your competitors. Not sure about their market, but sometimes there is a "winner takes all" market where the winner isn't established yet. So it's a race to grow fast enough to be the first to get to that network effect.
Look at online videos for example. Youtube has a near monopoly, while Dailymotion, Vimeo and others are just getting scraps. If your market hasn't settled yet, even if you're already established and growing, getting investors money could mean the difference between becoming Youtube and becoming Dailymotion.