I thought the money goes to the company, not the original owner. I think this is what pg suggested in the article.
Re:Investor Herd Dynamics
by fragsworth on Monday August 12, 2013 @06:14PM
(#6202512)
If a company owns cash, and you own a percentage of that company, it is not really different from owning a percentage of that cash.
The rest of the company still has the same value, plus some (unclear) amount from having successfully raised money.
Why? It is still 1 million dollars. The only difference is that the owner now owns 0.9M$ worth of company shares and 0.1M$ cash.