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How the heck did they blow through that much cash so quickly?? I wonder what the going rate is for such a list? I don't see much if any overlap between the two.
by pbreit 10y ago
How the heck did they blow through that much cash so quickly?? I wonder what the going rate is for such a list? I don't see much if any overlap between the two.
A post-mortem would be interesting. I'm guessing lack of discipline on the large raise. Since you don't have any direct competition, provie it out in 1 or 2 cities before expanding. Keep operations lean. Stay hungry.
- jmcgough 10y agoThey expanded to several cities to satisfy investors, and they were renting space to store furniture, which ended up being far more expensive than they expected. But yeah, burning through 19M in about 14 months is nuts. They were really betting it all on growing big enough to sell investors on a series B, which clearly didn't work out.
- rcach001 10y agoThis will def be a bigger story. You know all that could've been done with that much money? We should be concerned with irresponsible investors as well, not doing their due diligence on the company's performance to avoid such a catastrophe.
- ojbyrne 10y agoThey didn't necessarily blow through _all_ of it. Some companies will give cash back to investors when it becomes clear that the business is not viable.
- adwordsjedi 10y agoWhen people move and sell furniture, they often times need a cleaning to satisfy a condition of selling a home or getting their full security deposit back. Only synergy I really see and anything old is stale. Probably very cheap list.