Meathead wrote:
It seems like they are using the proceeds from one order to pay for the next, and each order is extremely limited. I would think that an influx of capital would allow them to increase the size of their orders. My guess is that they don't want to give up the equity they have in the company in exchange for that investment.Exactly, they are making a choice to limit supply in order to sell the wheels ASAP when their supplier ships them. This limits their risk of sitting on unsold inventory and allows them to pay for orders as they go. They are also growing sales at 50% per year so they could certainly put the capital to good use. The sharks would tell them that the are leaving sales on the table because they don't have the money to finance inventory.