| There’s a bigger story to tell than just a number. Is that $1.8B of revenue? Of profit? $1.8B of total funding in the last six months? In the last ten years? Here’s $100M of funding for a 6% stake, four years ago: https://siliconangle.com/2021/03/22/digital-identity-network... Last year: a liquidity event for early investors and employees, none of which helps the ongoing business but instead lets the founders and C-suite buy a private island / holiday home / mobile home / home: https://thepaypers.com/digital-identity-security-online-frau... A $275M loan — not an investment, though you get a good deal if they default! — to keep them afloat?: https://www.investing.com/news/stock-market-news/idme-secure... The only rung deeper into the hype pit would be valuing them as a unicorn based on a too-big-to-fail government bailout. |
A loan is a form of debt, which is one of the two main forms of capital - the other main one being equity. Debt is less expensive than equity, so companies prefer to issue to raise capital via debt than equity.