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I quite don’t get the math behind this. That’s a 50 person company with 100M of revenues. Their yearly operating costs are probably around 5M. Even if said reve
by Ecco 8y ago
I quite don’t get the math behind this. That’s a 50 person company with 100M of revenues. Their yearly operating costs are probably around 5M. Even if said revenues spanned 10 years they would still be making 5M in profit each year. Since they most likely have some amount of growth, last year’s profit has to be much higher than that.
Then why bother raising $20M? Isn't that amount a bit small compared to what they already made in yearly profit?
- deleted 8y ago[deleted]
- whoisjuan 8y agoYou don't raise money against your profits or available cash reserves. You raise money because you need it to do something. I can save a solid 40K a year in savings on a 120K salary, that doesn't mean I can't or shouldn't get a 20K loan to help with a significant expense. They already stated that the 20MM is meant to accelerate their development of a web version. That's why they raised this money.
- lostgame 8y agoSide note: awesome username.