Mogic considers

'We can build the company the way we want to.
We will do what we believe in, even if it is different or unusual.
Because what we can believe in is surprisingly rare.
Yes, we have been searching for it in a truly honest, straightforward, and sincere manner.

Representative Director Yoichi Yamane

December 15, 2025

Money can buy time or it can't.

From a different place by chance.

"I'm thinking of covering the next round with debt (borrowing): ・・・・・・"
What do you think about raising equity here?"

I was asked for advice and returned similar feedback.

In other words, quite normal.

It's all well and good to raise money, but in the end it's not how you invest it (or how you burn it), but in what."

It is called.

Expression of burning money.

It is quite a thing, but it is often used in the business community.

As the word "cash burn rate" suggests, the idea is that spending large amounts of money quickly buys time and expertise.

Using the large amount of money raised through advances, the company quickly assembles talented people, rents a large office, decides on eye-catching partnerships, makes friends with reporters and editors, spreads awareness through commercials and social networking, plans future company values, and maximizes expectations before the funds run out, all over again.

If it works in a straight line, it is profitable, but there are some unexpected bottlenecks.

Money should speed up a lot of things, but some things can't be speeded up in any way.

For example, it would be easier to understand if we consider it in terms of a child's growth.

Even if you buy a year's worth of food and eat it in a week, it does not mean that you will immediately be the same height and weight you will be a year from now.

The point is that there are differences in speedups, and we should select those that can be properly sped up and those that cannot.

And the more you speed up the process, the heavier it will be later on, with a premium cost on the capital you raise (in terms of WACC: Weighted Average Cost of Capital).

So we invest in gradations in what we can speed up, but have the courage to gently watch over what we can't.

Since funds are at their peak when they are raised, I wonder if we will not be able to make things go well if we keep growing impatient in inverse proportion to the ever-decreasing amount of money.

WACC Weighted average cost of capital
WACC Weighted Average Cost of Capital
https://w.wiki/Hf$q

The weighted average cost of capital (WACC) is the interest rate a company expects to pay on average to all holders of interest as consideration for raising assets.

Companies raise capital from a variety of sources, including common stock, preferred stock, and other related rights; straight bonds, convertible bonds, and other company stock convertible bonds; employee stock options, pension obligations, and executive stock options; and government grants. Expected returns are different for each funding source; WACC is calculated by considering the composition of the capital structure.
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