Comment by flakeoil

7 days ago

If he believes in the product he could have kept 100% of his company.

He kept 80%. The other 20% is owned by 8 different VCs. Seems like he's still in control. There's value in using other people's money instead of your own because it might make him less emotionally risk-averse in how he manages it.

Most of the time it's not about the money VCs send into it but the credibility that this brings. It looks a lot more mature when your idea is backed by a distribution of wealthy people.