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> raise capital or turn away customers If you have to borrow $100MM to provide the same basic service that you’ve been providing for 8 years, then aren’t these
by gonational 7y ago
> raise capital or turn away customers
If you have to borrow $100MM to provide the same basic service that you’ve been providing for 8 years, then aren’t these “customers” less customers and more recipients of free services?
Perhaps, that’s the point, no? Buy the remaining VPS market with unsustainable pricing, and then raise the price...
- Dylan16807 7y agoLet's say a server costs $10000 and gives you $500 a month in profit. Borrowing money to buy that server is definitely not giving away free stuff. Nor is that pricing unsustainable. No matter how profitable a business is, there's a limit to how fast it can expand debt-free based on how fast the profits accrue.