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How and why does this happen? I dont quite understand what would encourage someone to take outside investment money unless its necessary to build production.
by MrEfficiency 8y ago
How and why does this happen?
I dont quite understand what would encourage someone to take outside investment money unless its necessary to build production.
Maybe I'm so small time, I just dont understand, but Snapchat survived without taking investment from my understanding.
- freddie_mercury 8y agoI think maybe you don't know what a hedge fund is? Because your question doesn't really make any sense? Anyway, the answer is: hedge funds want to take money for 2 reasons: 1. The bigger the hedge fund, the more famous the manager is. They get to meet Presidents, talk on CNN, get invited to Davos, and other famous people perks. You get to say you "won". 2. The hedge fund charges fees based on the assets under management; the more money you take in, the more money you personally make.
- MrEfficiency 8y agothank you!
- billmalarky 8y ago>Snapchat survived without taking investment from my understanding. Ignoring the cost of development (which is reasonable given how simple the app was when it launched), Snapchat has incredibly high infrastructure costs. It runs on google cloud (you pay a huge markup for cloud services - it's just often worth it because you can scale up and scale down to match actual need but I assure you snapchat was not scaling down) and is media heavy (read high bandwidth bills). Snapchat received $2.65 billion in investment pre-ipo!!! $2.65 billion! https://www.crunchbase.com/organization/snapchat#section-ipo-stock-price https://www.crunchbase.com/organization/snapchat#section-ipo...