VC firms take ownership and work on multiples, a good investment is expected to exit with 16-20x. For that to happen, the space needs to support that type of re

VC firms take ownership and work on multiples, a good investment is expected to exit with 16-20x. For that to happen, the space needs to support that type of revenue, and the business needs to support those types of unit economics. Hardware is a very expensive space, you need a lot of capital to set up a supply chain and take a HW product to market, especially something like a VR headset where (according to their blog) they're doing a lot of custom/complex things. This all needs to be made repeatable and then brought to market and then that market needs to have a consumer base to support it. How much money do you figure a startup like Simula needs to bring it's product to market just at the minimum? I was at DigitalOcean in the beginning, so I have a sense of capex heavy business. In the early days, we needed hundreds of millions of dollars to scale up the hardware, this had to come from venture AND banks. Additionally, in the instance of DO, we're talking extremely generic off the shelf hardware, nothing custom, our supply chain wasn't complex. If I was these guys, I wouldn't try to build a scaled business in a space that is emerging in the way this space is. I'd either call it a day or try to no have any investors at all, find something extremely focused, get to a small profit, and enjoy a life style business the founders can live on for the next 60 years. Of course, I'm always happy to be wrong and if they push forward I hope they win!