The way I read it is that they already have one minority investor, Battery Ventures and they are now adding another, PSG. PSG will get a seat on the board of directors, it's unclear if Battery Ventures have a seat. It is also unclear if the two minority investors combined holds a majority.

I hope things goes well for Bitwarden, but I'm also expecting an amazing journey in their future. I really doubt that there's enough money to be made as is to yield an acceptable return on investments for the $100M, plus whatever Battery Ventures have already put forward.

(I’m outside of the edit window)

When I ask “how can you trust the company”, I don’t mean to imply that the founders have less than good intentions. But once you take VC money, the founders intentions don’t mean much.

I’m sure the founders of both Instagram and WhatsApp - just two companies that come to mind where the founders were idealistic and they were hit hard with the reality stick once they got acquired - really believed that their company wouldn’t change for the worse once they were acquired.

I doubt the company will just disappear. They will probably get acquired. But what it morphs into is probably not something consumers who like it now will want.

The only company that I can think of that has managed the transition well and gone public is BackBlaze.

I don't understand, how is their business model not profitable? Their business model is, as I understand it, paid subscriptions.

Their business model is not profitable by definition if they are spending more money than they are bringing in requiring outside funding.

There is the option that they are profitable, but need the investment to expand the business somehow. There is some indication of that in the press release, but it does seem a little fluffy, and a $100M is a pretty big sum of money.

I can see what you mean, but another way of looking at it is: Most investments are done with the expectation of it being worth more down the line, so someone(s) thinks there are a hundred million reasons why it is a profitable business. :-)

But maybe "are they profitable" is the wrong question. I remember 5 years ago my brother in law said "Tesla isn't profitable" and I countered with "They don't want to be profitable right now, they are growing an inventory and investing heavily in that. Showing a profit is the last thing they want to do." He seemed to be accept that answer, I mean now he has 2 Teslas. :-)