3 ms·
We need to remember what sustainable business model means for the people in charge at patreon though. What you describe as a sustainable business model is corre
by Traster 8y ago
We need to remember what sustainable business model means for the people in charge at patreon though. What you describe as a sustainable business model is correct for a small independent business. What is sustainable for a venture capital fund is to have many companies attempting to grow revenue by 50% PA, not 5% PA.
For a venture capital firm investing $60m into a company and hoping for small sustainable profits isn't a sustainable business model - it's tying your money up in low growth long term investments when that's literally the opposite of what they invested for.
This may not be good for the people who use Patreon, but what you're describing isn't sustainable for Patreon.
- dbrgn 8y agoIt isn't sustainable for Patreon's investors. It could be sustainable for Patreon itself. The 5% cut sounds like a reasonable amount of money to build and run a company.
- dalbasal 8y agoSustainable business is a very poor choice of words for a VC to use in this context. Your investment doctrine might require companies to pursue 10X growth or die trying, but... that means your investment model is not about sustainability (of the businesses you invest in). The businesses could be perfectly sustainable. A startup is not necessarily guided by sustainability. Amazon lost money for decades. FB never bothered to make money until their IPO. They were not pursuing sustainability at those points. They were betting on growth.
- ConceptJunkie 8y agoAnd Cheers was near the bottom of the ratings its first season. Today low ratings gets you canceled after 6 episodes or fewer. Good things often take a while to take root. VCs aren't interested in that noise.