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by FinnLobsien 222 days ago
The average series D is 50-100M. This is 2.3B.

I'm wondering if AI coding companies almost NEED to be this capital heavy to pay for the massive LLM costs.
2 comments
wongarsu 222 days ago
Being this capital heavy also "justifies" their valuations. New shares issued in each funding round are typically around 10% of total shares, so to get to a valuation of $30B you have to raise something around $3B

Of course you could also just spend your money wisely and not do another funding round, but then how are people supposed to know how much you are worth? And how are investors supposed to know they made a great investment?

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tuhgdetzhh 222 days ago
They propably burn something in the order of 50M-100M per month in LLM API costs for models like Sonnet 4.5. So the answer would be: Yes.
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