Article says that it's for potential acquisitions. I'm not a banker, but I assume they don't make loans for those kinds of operations. Also, they charge interest. Ultimately, it's a question of what the most effective (cheapest) way to add capital to the balance sheet is. They almost certainly could have raised venture debt (they probably already have an agreement in place), but this was probably deemed a more cost effective way to add capital.
> I'm not a banker, but I assume they don't make loans for those kinds of operations.
Generally not banks per se, but bondholders definitely do. That’s PE’s entire business model.
Maybe they can buy Atlassian now.
Except Atlassians market cap is $20 billion :-)
They likely are doing both, raising $ for % and debt additionally. It's not either or, just that debt rounds usually don't get reported/announced. They often happen hand in hand with investment rounds.
A company that is net losing money can't get a loan for 90% of their forward revenue.
Banks don't like to lend money to company with no tangible assets.
They do all the time and Pagerduty probably already has these kinds of loans in place.