The more cash raised the lower the risk of investment. This increases the value of the investment meaning you own a smaller proportion of a larger asset. Once they are profitable they can raise at higher prices. The question is to what extent is the decrease in value from dilution less or more than the increase in value from the reduced risk.
If the company is at 100% risk of complete loss bankruptcy (liquidation of assets being less than the amount owed) then the cash would be needed to enable the conceptual possibility of the company going from $0 value to some chance of survival = $0 value. The other question is whether or not the liquidated assets would be worth a lot more than the value at the current share price (but likely still less than the cost of a hostile takeover).
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