Microsoft is probably a bad example since they are publicly traded.
Freetrade (the company itself) is a better example, since they are still private. If the company needs to raise more capital, they will usually do so at a higher valuation… as long as there is growth, or their other types of goals are being reached. This means the share price will likely increase.
On the other hand, it is not unusual for startups to raise further capital at a reduced valuation. Take airbnb and Monzo for example: both were struggling and needed capital, so their new investors got a bargain at the expense of the old ones.