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Seems they are growing well. They already have pretty good name recognition. It doesn’t seem like a high resource business, unlike video hosting, and they alrea

Seems they are growing well. They already have pretty good name recognition. It doesn’t seem like a high resource business, unlike video hosting, and they already have a good monetization strategy (they basically take 2.9% of donations). Given that they are pretty close to a billion dollars a year, that would be close to $29 million/year. Given all this, what is the purpose of raising more money at this time. They already have good name recognition, and should be turning a profit by now. Sometimes, too much funding can end up being a curse, where the business loses focus on their core competency and tries to branch out too much. EDIT: Thanks to the commenters below, It looks like they take somewhere between 5 - 12% of donations. That is on top of the 2.9% processing fee. So it looks like they they could easily bring in between $50-100 million/year with the $1 Billion/year in donations that they are pretty close to bringing in(depending on the mix of plans people sign up for). This further reinforces the point that they have a pretty good monetization strategy.

justapassenger 6y ago
But $29M/year I isn’t that much. Especially as they’re located in San Francisco and have about 200 employees (pretty sure not all are there). That gives you $145k per employee. That’s roughly enough to cover salaries, assuming no other cost to run the business.
- Nextgrid 6y ago
  My question is WTF are those 200 people doing considering the main product of the company is an automated process and the code has already been written & tested over the previous years?
  - justapassenger 6y ago
    Running business requires people. Accounting, support, marketing, hr, security, procurement teams, lawyers, fraud teams, etc, etc. To build tech company you require more than just engineers.
xoxoy 6y ago
they charge 8% for the middle plan...i think you’re looking at the payment processing fees on top of the 8% cut of earnings
- deleted 6y ago
  [deleted]
judge2020 6y ago
https://www.patreon.com/product/pricing https://www.patreon.com/product/pricing
simongr3dal 6y ago
But they do have video hosting, and podcast hosting?

justapassenger 6y ago

But $29M/year I isn’t that much. Especially as they’re located in San Francisco and have about 200 employees (pretty sure not all are there). That gives you $145k per employee. That’s roughly enough to cover salaries, assuming no other cost to run the business.

Nextgrid 6y ago
My question is WTF are those 200 people doing considering the main product of the company is an automated process and the code has already been written & tested over the previous years?
- justapassenger 6y ago
  Running business requires people. Accounting, support, marketing, hr, security, procurement teams, lawyers, fraud teams, etc, etc. To build tech company you require more than just engineers.

xoxoy 6y ago

they charge 8% for the middle plan...i think you’re looking at the payment processing fees on top of the 8% cut of earnings

deleted 6y ago
[deleted]

judge2020 6y ago

https://www.patreon.com/product/pricing https://www.patreon.com/product/pricing

simongr3dal 6y ago

But they do have video hosting, and podcast hosting?