Stake just brought home $50 mil in fresh funding

The company said they'll stash the cash in their war chest.

What's the key learning?

Stake raised $50 million in the second tranche of its Series A funding, and plans to put it in its war chest
A war chest is a business term for a stockpile of money that could help see a company through rough times, or to help it acquire a new company
War chests are generally a good thing, but sometimes having too much cash stashed can be seen as inefficient use of capital.

👉 Background: Stake is an online trading platform that launched in Sydney back in 2017. It was one of the first Aussie platforms to offer commission-free brokerage for US stocks in Oz.

👉 What happened: Stake banked $40 million in funding in the first tranche of its series A funding last year, and it just rounded out the second tranche with another $50 million in fresh capital 💰.

👉 What else: Stake reckons it's adding these juicy funds straight to its war chest.

What's the key learning?

💡 In the biz world, companies like to refer to the reserves of cash they set aside as their 'war chest'.

💡 It's not really to go to war, but it'll definitely help them in times of economic uncertainty or when the company wants to complete an acquisition in the future.

💡 War chests are generally a good thing, but sometimes having too much cash stashed can be seen as inefficient use of capital - it ain't growing, and it ain't being paid out as dividends. Stake's war chest is looking juicy, but not suspicious... for now 👀 .

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Stake just brought home $50 mil in fresh funding

What's the key learning?

What's the key learning?

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