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Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit. My app provides me a nice income, but it'
by davidkuennen 4y ago
Having bootstrapped my own app I can't fathom how some other apps with millions of VC money will every turn a profit.
My app provides me a nice income, but it's far from anything able sustaining teams of dozens of people. And I'm pretty sure throwing money on ads wouldn't change that.
- papito 4y agoYour app is making money? That's very nice. But have you tried selling the PROMISE of more moneys sometime in the future? Lots and lots of moneys. Just say things like "We are trying to elevate the world's consciousness" and "community-based EBITA!"
- math-dev 4y agoSilicon Valley was a great show
- tchock23 4y agoThose quotes came from Wecrashed about WeWork.
- davidkuennen 4y agoSounds a lot like crypto to me.
- dboreham 4y agoYou are looking at the darts that didn't hit the bullseye, or fell on the floor.
- seibelj 4y agoYou are thinking small and that’s fine. It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of effort before the big payoff.
- scarface74 4y agoAnd then only 10% “payoff” for the investors, even fewer payoff for the employees.
- nradov 4y agoVenture capital as an aggregate investment class might only generate returns in the 10% range, but no VC would invest in an individual deal with such a low expected return. For early stage A-round deals they're targeting something like a 1000% return, and then those targets decline somewhat for later rounds.
- scarface74 4y agoWhich is fine for the VC. They are well diversified. It sucks for employees.
- nradov 4y agoHow does it suck for employees? They still get paid. Any stock options or grants are essentially a lottery ticket. Anyone taking a job offer expecting to get rich on that basis is a fool.
- scarface74 4y agoPrivate companies usually pay less in tech in cash than public companies cash+RSUs. Even in the current brutal stock market environment, at least your RSUs are guaranteed to be worth something and you can diversify when you vest.
- TheRealNGenius 4y ago
- jasfi 4y agoWouldn't more money allow you to spend more on marketing and sales, which in theory could drive more profit? I think that's part of the bet.
- astura 4y agoA lot of these VC funded marketing efforts end up being selling dollars for 75 cents. Sure, it might get you tons of growth but that that is really difficult to translate to profit.