Yes a cap raise is bad, because it adds extra shares to the...

Yes a cap raise is bad, because it adds extra shares to the total pool of the company's market capitalization- thus diluting the share price.

Example: Company A has a Market Cap of 50,000,000 with a share price of $1 per share
Company A Does a Cap raise and adds an additional 50,000,000 - the new Market cap is 100,000,000.
The Share price effectively halves to $0.50 a share.

This is an extreme example and there are multiple factors that are in play.

For new investors wanting to invest in a new stock, it is a fantastic opportunity to get into a stock on the cheap.

But be careful, do research as to why the company is asking investors for more money before giving them your own.