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I don't usually complain "what the heck are they doing with that kind of money." But, from a cursory look, Asana seems to be one of the most functionally simple
by shubhamjain 9y ago
I don't usually complain "what the heck are they doing with that kind of money." But, from a cursory look, Asana seems to be one of the most functionally simple Project Management software I have seen. I know it's trite to undermine the complexity of software, but in this case, I can't find many reasons why they need that kind of money. What are they doing that necessitates a big team (251-500 employees)? The software isn't handling massive amounts of data. Its complexity seems comparable to Trello, which raised only $10M (<7% of Asana's total funding) [1].
How are they burning this amount of cash? Am I missing something?
[1]: https://www.crunchbase.com/organization/trello https://www.crunchbase.com/organization/trello
- deleted 9y ago[deleted]
- Bjorkbat 9y agoObviously Trello lacked the mission to help humanity thrive, so their burn rate was much lower ;)
- rdlecler1 9y agoSometimes these announcements include or are driven by secondary sales to provide liquidity to founders and employees.
- tristanj 9y agoI'd bet most of the money is going to their employees. Asana offers great perks. Higher than average salaries, free meals, "unlimited" vacation, paid maternity/paternity leave. New employees also get $10,000 to furnish their desk. They probably burn $250k/yr per developer, higher than most other tech companies.
- physcab 9y agoCustomer acquisition. Once you know the LTV of an enterprise customer and you know the cost to acquire them, as well as the channel, you go to the bank, take out as much money as you can, and get as many of them as possible.