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The Retool's founder explained this in the linked comment:

> TBH, fundraising is kind of like charades: it's a way to signal you are doing well, without telling people your private company metrics. I wish we never needed to fundraise, and could just focus on building great products and working with customers instead. :)

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If they didn't need the money, they could do just that.

The real advantage is for when they decide to sell in X years. Instead of being bought for 1B by Microsoft they'll get 5B because other VC overvalued them in the past.

Yeah it is signal to potential customer, employees and also it always help if you have some money at bank.

It's a signal to me that they're not confident about their market position and will probably need to return the money when VC gets tired of waiting for the growth they typically demand.

They would have never been able to raise three consecutive rounds with increasing valuations without demonstrating to VCs the growth they typically demand.

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