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This is unfortunate. I would hope we see a postmortem to get a better understanding of what went wrong. This information could be incredibly valuable to other f
by brianbreslin 8y ago
This is unfortunate. I would hope we see a postmortem to get a better understanding of what went wrong. This information could be incredibly valuable to other founders working on similar challenges.
- fmajid 8y agoThe business model of losing money on every sale, but making up for it with volume, turned out to be unsustainable, who knew? It was nice to get VC-subsidized dinners while it lasted.
- exogeny 8y agoIt's amazing to me how few companies get this, and even more amazing that they ever find funding, much less multiple rounds.
- brianbreslin 8y agomy questions though are like: how much scale do you need to make it not a money loser? how do you rationalize the loss-leading? has any company ever broken past that threshold? (i'm guessing uber ?)
- manigandham 8y agoThere's no mystery. This is just not a viable business model as known for 20 years now from the first dot-com bust. The economics haven't changed meaningfully since then for there to be another serious attempt.
- throwaway786786 8y ago>>I would hope we see a postmortem to get a better understanding of what went wrong. High level -- FOMO lead mediocre VCs to take OPM (LPs reaching for yield) and spray and pray. Bros who went to Stanford gave other Bros who went to Stanford $100M+ because of connections, because what do you have to lose?