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YC has a strong focus on revenue it seems. They talk about 'ramen profitable' meaning - squeaking by with enough money to pay basic bills and survive. I think
by jomamaxx 10y ago
YC has a strong focus on revenue it seems.
They talk about 'ramen profitable' meaning - squeaking by with enough money to pay basic bills and survive. I think this is great advice specifically because of how it empowers you vis-a-vis investors. It changes the game radically -> no 'desperation'.
But they also have this thing after YC 'time to profitability'. Seems they are big on that.
Frankly - despite bubble hype, there is something to be said for getting tons of users. If you have tons of users and a 'basic' type of revenue model you could apply that you know will work - even basic ads - then I think it makes sense.
LinkedIn, Twitter, WhatsApp, Instagram - so many just focused on getting tons of users and I think that their valuations were reasonable. An acquirer can roughly calculate how much each user is worth.
I think it depends on a lot on the type of business model.