Sorry for the confusion, but my arguments still stand...
I didn't understand that you were talking about something that Kim Thompson should have done in the past, but didn't. You evidently did not understand that I was speaking from the perspective of a private investor in all of my alternatives, and I apologize for not making that more clear.
Regardless, my arguments still stand. Assume that the PPS was higher, but Kim Thompson wants a significant infusion of capital into KBLB. Had the investor gone the way of preferred stock, it would have seriously devalued the common stock that I (and you?) and everyone else owns. Private investors would not have had much incentive to go the route of common stock or a loan. There is simply too much risk there.
One might make the case that Kim Thompson did exactly what you wanted him to do and I said was unlikely. His arrangement with Calm Seas is such that they are buying common stock to inject capital into the company at a rate of $100,000/month. But the amounts we are talking about here are small compared to the equity that has been put into Bolt Threads, which is why this arrangement was possible.
Could you explain what sort of arrangement you think Kim Thompson should have made with a private investor in the past? That might help to move the discussion forward. The best I can determine is that you would have been willing to loan the company $5 million after getting assurances from your team that the silk was real. If I had $5 million (which I don't), I would wonder what was stopping me from hiring a biomedical engineer to replicate the gene splicing that KBLB has done. Probably wouldn't cost $5 mil, right? In the absence of patent protection, others could enter the market with a smaller capital investment, meaning I'd be unwilling to risk my $5 mil as a loan. You certainly can feel differently.
