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They spent $102M in just over a year? How is that even possible? I don't think if I hired as fast as I possibly could continuously without doing anything else
by erulabs 5y ago
They spent $102M in just over a year? How is that even possible?
I don't think if I hired as fast as I possibly could continuously without doing anything else I'd be able to get anywhere close to that number in 14 months.
Perhaps they closed up shop with a huge treasure chest remaining?
I run a startup with half the revenue but at a valuation fifty times lower. I pay myself peanuts and my family suffers from that. I mentally calculate what these folks must have been paying (themselves and others) to burn anywhere near that much cash. I can never shake the feeling that I'm a huge sucker trying to build a profitable business.
- tempnow987 5y agoThe guys running these type of burn $100M plays are, in my opinion, basically crooks. Often if you go back through these burn money like crazy doing nothing type companies you find out the founders have a pretty checkered history. If you dig under the hood perhaps they took money out, their friends / family got money out, favored vendor deals, related party transactions? I mean seriously, how do you evaporate $100M in a YEAR with only $600K of revenue to show for it!
- josephd79 5y agohttps://twitter.com/Jack_Raines/status/1511737489190494208 https://twitter.com/Jack_Raines/status/1511737489190494208
- tempnow987 5y agoGood lord! Why am I totally unsurprised.
- Lightbody 5y agoI mean… aren’t their investors also guilty of some incredible malfeasance? It was pretty obvious from the outside Fast was kind of a joke: you couldn’t find their product in the wild even if you tried. What did those investors think was going on?
- tempnow987 5y agoActually, SV has been such a success because you can raise $10M, and sometimes more, basically over a lunch. No one else has that. So yes, money goes to waste, this isn't always considered a "bad" thing given how many startups go under even with well intended founders. SV has made a repeated bet that getting rid of almost all normal "red tape" (think audited financials, regulatory disclosures etc etc) is a net positive. Startup after startup has found this a successful place to start massive globe spanning companies (and smaller ones).
- deleted 5y ago[deleted]
- nunez 5y agoHire engineers at FAANG packages, spend a ton on marketing (like parties, sponsorships, etc), and grow like crazy absent of revenue would be my guess