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This is a poster child for the value of raising money vs solely bootstrapping (I hope DHH doesn't downvote me!) It appears this added $60,000 ARR. I'm not sure
by jusben1369 11y ago
This is a poster child for the value of raising money vs solely bootstrapping (I hope DHH doesn't downvote me!) It appears this added $60,000 ARR. I'm not sure how big the market is (TAM would be all Stripe subscription users?) but assuming it's 10x of what they found in just 60 days and growing (as Stripe is growing) Therefore are you looking at $500,000 to $1 mil more per year if properly resourced to go after this opportunity? Raise $1 million to staff up for it; the good news is you have real data now.
- anthony_franco 11y agoThe economics don't make sense by just simply pouring more money into the problem. If they need to hire an additional employee to support that $60k ARR they'll be heading into the red in terms of net profits. They also probably figured that's true given they already raised $500k so they actually do have additional capital at their disposal. They're not bootstrapped anymore. Smart move to pull the plug and rethink things.
- jusben1369 11y agoYep. Not at $60K per annum. That's why I talked about how big the opportunity overall was (what % of the market did they capture in those 2 months?) Maybe being just on Stripe it's too small vs supporting other subscription offerings.