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I would be dubious about joining a company that spent its first million of investment on a domain name.
by pg 16y ago
I would be dubious about joining a company that spent its first million of investment on a domain name.
- staunch 16y agoSome domains are truly worth $1 million. If the guy has plenty of additional money to invest, why would it matter? A really great domain can increase your chances of success.
- revorad 16y agoMost successful startups I can think of (Mint, Dropbox, Facebook, Twitter) who bought expensive domain names did it well after they had traction.
- staunch 16y agoMint.com was purchased during their Series A, well before any traction. It's also the only domain of those four that had significant inherent value. They could have easily resold Mint.com for a profit. Buying it early gave them the benefits of the great domain and lowered the price they paid. I think what Mint did was brilliant. The only reason I can think of not to buy a $1M asset for $1M is if it eats into your runway. If it doesn't then you're better off if you can.
- revorad 16y agoI stand corrected.
- deleted 16y ago[deleted]
- pg 16y agoIt's not necessarily a mistake to spend a million on a domain. What's alarming is when it's the first thing you do.
- prpon 16y agoPG: What do you think of the equity offered?
- pg 16y agoI agree with the other commenters that it's an employee amount of equity rather than a cofounder amount. I don't know enough to say whether it's a good deal or not; that depends on the company. But what little we're told doesn't sound encouraging.