It’s perceived trajectory. You think they can’t grow any more- they think they can grow 100x over with enough capital
Growing organically takes a long time and require a lot of luck. Capital can unlock massive growth if used in the right way.
Besides, why not? If the company gets bigger, all the execs win, if the company raises money and wastes it and collapses, the execs are rich already and just move on.
> Besides, why not? If the company gets bigger, all the execs win, if the company raises money and wastes it and collapses, the execs are rich already and just move on.
That mental equation depends on who owns the company. Who the big insider ownership stakes are held by. If you own 43% of OnlyFans as the primary founder, you're going to think twice about mass dilution unless it's absolutely necessary. If you can avoid hefty dilution and still build the company, your wealth outcome will be dramatically better in the end. That's why not.
OnlyFans isn't a zero insider ownership shell run by suits at this juncture. It's only 4-5 years old. It was founded by two brothers (that may still retain upwards of a quarter of the business), and then Leo Radvinsky from the MyFreeCams cam site purchased 3/4 of it. MyFreeCams is a money spigot, which funds Leo's venture activities, including the purchase of OnlyFans. Taking an enormous dilution hit would not be ideal for someone in that position, he would want to be very strategic about it (he already has financial resources).
Growing organically takes a long time and require a lot of luck. Capital can unlock massive growth if used in the right way.
Besides, why not? If the company gets bigger, all the execs win, if the company raises money and wastes it and collapses, the execs are rich already and just move on.