One thing I haven't seen mentioned yet in all the comments (or maybe I just missed it)is that a capital infusion can allow you buy talent and expertise which in turn permits you to grow faster.
In the article Rudzin worked for 20 years within the industry and he surely within that time had accumulated a lot of niche knowledge which helped him succeed.
Say X is a high school teacher with an insight that a better mattress is needed in the marketplace. She follows up on this and goes on to start a company that initially shows traction. X after a while will discover that her lack of knowledge in finance, distribution, negotiation, HR, legal etc (in a general sense, and on an industry-specific level) is a barrier to her companys development. Capital will help solve this problem by allowing her 'buy' and domesticate expertise within the company and and use same for expansion and growth.
In the article Rudzin worked for 20 years within the industry and he surely within that time had accumulated a lot of niche knowledge which helped him succeed.
Say X is a high school teacher with an insight that a better mattress is needed in the marketplace. She follows up on this and goes on to start a company that initially shows traction. X after a while will discover that her lack of knowledge in finance, distribution, negotiation, HR, legal etc (in a general sense, and on an industry-specific level) is a barrier to her companys development. Capital will help solve this problem by allowing her 'buy' and domesticate expertise within the company and and use same for expansion and growth.