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I never get why those companies receive that amount of money of a second round of funding. It isn't that the whole service takes 17.5 million to build or to hos
by jrnkntl 18y ago
I never get why those companies receive that amount of money of a second round of funding. It isn't that the whole service takes 17.5 million to build or to host or to mantain, even when you add that all up.
- cstejerean 18y agoKeep in mind that developers can be expensive. Also the idea with raising money is that when you do get around to raising money to raise as much as possible, since you never know how long before you can do another round. I know nothing about their numbers but for example while 5 million seems awfully high it's only 2.5 years of runway for a 10 person company if you estimate 200k per year per employee in average costs (salary, office space, benefits, etc). Seems like they have a decent product with a business model, I'm more worried about the sites that get 10 million to build a social network for wine lovers.