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> It's a classic story of a startup with a loyal userbase paying a reasonable fee for stagnating features for years, misjudges customer loyalty, doubles the pri
by tablespoon 4y ago
> It's a classic story of a startup with a loyal userbase paying a reasonable fee for stagnating features for years, misjudges customer loyalty, doubles the price, then makes some PR mistakes, and comes out behind in the end.
Is private equity involved here?
Someone in my family was recently looking for a calorie tracker app. All the ones I was familiar with (and liked) from years ago had been acquired by private equity, which only crippled the free tier and make subscriptions ridiculously expensive.
Seems like the private equity playbook is to cut development to the bare bones, increase prices, and let the app rot while they burn the goodwill to turn it into short/medium term cashflow.
- mbesto 4y ago> Is private equity involved here? Nope. But VCs are involved. > Seems like the private equity playbook is to cut development to the bare bones, increase prices, and let the app rot while they burn the goodwill to turn it into short/medium term cashflow. Quite the opposite. Most PE does not do this btw, unless it's large cap ($1b+ valuation or higher). This is VC backed, and they are actually aggressively investing in growth (at all costs).