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An angel investor recently responded to my pitch materials by scolding me for saying that our unit economics were strong enough to make most of our revenue prof
by staticautomatic 10y ago
An angel investor recently responded to my pitch materials by scolding me for saying that our unit economics were strong enough to make most of our revenue profit (which is true). He said it "wasn't smart" and that other investors would question whether I'd thought through our business model. Months later, I am still at a loss for words.
- pault 10y agoMaybe he was implying that it should be reinvested in growth?
- staticautomatic 10y agoHe claimed that costs would outstrip our margins as we grew. I have to assume he just thinks this is how startups work, because most of the costs he specifically brought up don't actually exist in our market/business model. In any event, if you have an instinctively negative and suspicious reaction to profitability, then as a business person, I want nothing to do with you.
- rhizome 10y ago"Nobody ever lost a funding round for using Heroku."
- staticautomatic 10y agoI don't follow. Could you explain what you meant?
- rhizome 10y agoIt's a play on "nobody ever got fired for buying IBM," the original FUD. It relates to that person seemingly thinking that a high run rate is de rigeur. Like IBM in the 60-70s, Heroku is among the costliest providers.