[ryanwaggoner]

It sounds like what Fred is saying is suspiciously close to the maxim "You have a spend money to make money", which is often quoted by people as they spend money on useless things that will in no way help them make money.

As a real estate investor, I can tell you that cash is kingliest when it's sitting in your bank account. It makes expansion much easier, because people are most willing to loan money to people who don't need it. I kind of expect it's the same in the startup world...if you're sitting on a large pile of cash with a low burn rate and high profitability, you can probably raise cash a lot easier than a startup that's down to their last nickel with a huge burn rate and no profitability in sight, yes?