Not necessarily. Let's say you want to build aggressively to $1B revenues with a $1B annual run rate. Let's further say you pretty much keep expenses and revenue directly in line, so you don't lose money but you don't gain either while building. So, your cash reserves remain the same. As your revenue grows, the cushion you have to deal with a market downturn or seize unexpected opportunities declines. Having a cash cushion up front solves this problem.
I don't have any special insight into 1Password's strategy. But I run a company that is essentially bootstrapped and what I described is exactly how we think of cash reserves. In the bootstrapped case, there's a basic math problem that to maintain a constant runway while growing rapidly you must be cash flow positive by an increasing percentage as time goes on. Perhaps 1Password is just looking to protect a long runway that will get them to IPO.
I don't have any special insight into 1Password's strategy. But I run a company that is essentially bootstrapped and what I described is exactly how we think of cash reserves. In the bootstrapped case, there's a basic math problem that to maintain a constant runway while growing rapidly you must be cash flow positive by an increasing percentage as time goes on. Perhaps 1Password is just looking to protect a long runway that will get them to IPO.